A Disadvantage of Using a Whole Life Policy for Saving

question 17

Multiple Choice

A disadvantage of using a whole life policy for saving is:

• A) earnings outside the policy can be greater
• B) federal income tax must be paid on the yearly cash value increases
• C) creditor protection is available if bankruptcy occurs
• D) since premiums must be paid to keep the policy in force, there is the semi-compulsory nature of saving

---

Definitions:

Learning Curve

A graphical representation showing how an increase in learning comes from greater experience or the efficiency gains that follow from repetition of a task.

Learning Curves

The theory that productivity and efficiency improve with experience and repetition, often represented by a graph showing a decrease in labor time per unit as production volume increases.

Supply-Chain Negotiations

The process of reaching agreements within the supply chain about terms, prices, delivery schedules, and other pivotal factors affecting the supply and distribution of goods.