All of the Following Statements About Variable Life Insurance Are

question 40

Multiple Choice

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

• A)The premium is level and guaranteed not to increase.
• B)The death benefit varies according to investment experience.
• C)The policyowner has the option of investing the cash value in several investment accounts.
• D)Cash surrender values are guaranteed.

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Definitions:

Elastic Demand Curves

Demand curves that show a significant change in quantity demanded when there is a change in the price of the good or service.

Differentiated Products

Goods or services that are distinguished from similar products in the market by unique characteristics, such as quality, brand, or performance.

Maximizing Profits

Refers to the process of increasing the difference between total revenues and total costs to achieve the highest possible earnings.

Minimizing Losses

A strategy or approaches taken to reduce the amount of loss incurred in a business operation or investment.