All of the Following Statements About Universal Life Insurance Are

question 44

Multiple Choice

All of the following statements about universal life insurance are true EXCEPT

• A)Interest is credited to the policy's cash value each month.
• B)Any withdrawal of a policy's cash value reduces the amount of the death benefit.
• C)Interest credited to a policy's cash value is taxable for the policyowner in the year credited.
• D)The policyowner can add to a policy's cash value at any time subject to policy guidelines.

Understand the concept of discount periods and calculate the end date.

Calculate the amount credited to an account after partial payments and discounts.

Determine the net price after multiple trade discounts.

Interpret invoice payment terms and calculate discounts.

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Definitions:

Durable Good

A type of good that does not quickly wear out and is used over a long period, such as appliances, cars, or furniture.

Consumer Product

A product intended for personal use or consumption by the general public, as opposed to products designed for industrial or commercial use.

Business Product

Goods or services that are sold primarily to other businesses for use in production, resale, or operational purposes, rather than to the ultimate consumer.

Shopping Product

A type of product that consumers spend considerable time and effort in gathering information and comparing alternatives before making a purchase.