Florida Life and Health Insurance License Practice Test 2025 - Free Insurance Practice Questions and Study Guide

In whole life insurance, "perpetual" refers to the nature of the coverage that remains in force as long as premiums are paid. This characteristic distinguishes whole life insurance from term insurance, which only provides coverage for a specified period. Whole life policies provide lifelong coverage, meaning as long as the policyholder continues to pay the necessary premiums, the policy will remain active and benefits will be paid upon the death of the insured. This guarantees that the insured's beneficiaries receive a death benefit, ensuring financial protection that persists throughout the insured's lifetime, regardless of age or health changes.

The other options describe features associated with different types of insurance. For instance, some policies offer annual renewal but are not guaranteed for life. Others might set stipulations on benefits based on the insured living for a specified number of years or may have expiration points, which are not applicable to whole life insurance. This fundamental principle of lifelong coverage is what makes option B the correct answer.