Which of the Following Statements About Variable Life Insurance Is

question 11

Multiple Choice

Which of the following statements about variable life insurance is true?

• A)Premium payments are flexible.
• B)The death benefit cannot be higher or lower than a guaranteed,specified,value.
• C)The policyowner has the option of investing the cash value in several investment accounts.
• D)The cash surrender value of the policy is guaranteed.

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Definitions:

Consumer Substitution

The tendency of consumers to switch from one good to another in response to changes in relative prices, keeping their level of satisfaction or utility constant.

New Good

A product that has been recently developed or introduced to the market, offering new benefits or replacing existing goods.

Economic Well-Being

A measure of how well an individual, community, or country is performing economically, often considering factors like income, employment, and access to goods and services.

Variety

The range of different products, services, or choices available in a market, often contributing to consumer satisfaction and market efficiency.