Kansas Life & Health Insurance Practice Exam 2025 - Free Life & Health Insurance Practice Questions and Study Guide

The scenario describes a modified whole life policy, which features a premium structure that is designed to be more affordable initially but increases after a set period. In this case, K pays a fixed premium for the first five years, after which the premium increases, reflecting the characteristics typical of modified whole life insurance.

Modified whole life insurance is specifically designed to offer lower premiums in the early years, catering to individuals who may have budget constraints initially but anticipate that their ability to pay will improve over time. The premium increase in the sixth year aligns with how these policies are structured—initial affordability transitioning to a higher premium once the policyholder's financial situation is presumed to stabilize.

Other types of policies do not feature this specific progression of premiums. For instance, whole life insurance has a consistent premium schedule throughout the life of the policy, while term life insurance provides coverage for a specific period without any modifications to premiums or the benefit structure. Universal life insurance offers flexibility in premium payments but does not typically have a fixed premium for an initial period followed by an increase. Therefore, the unique feature of a modified premium structure makes modified whole life the correct choice in this context.