Which of the Following Holds True for Whole Life Insurance

question 121

Multiple Choice

Which of the following holds true for whole life insurance?

• A)Premiums paid have no cash value.
• B)All cash value is returned upon death.
• C)Policies can be used as collateral.
• D)Premiums are paid for insurance only.

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Definitions:

Income Statement

A financial report that shows a company's revenues and expenses over a specified period of time, resulting in net profit or loss.

Vertical Analysis

A technique in analyzing financial statements, where each item in the primary categories of assets, liabilities, and equity on a balance sheet is expressed as a ratio of the overall category total.

Solvency Analysis

An assessment of a company's ability to meet its long-term financial obligations and continue its operations.

Quick Assets

Cash and other current assets that can be quickly converted to cash, such as marketable securities and receivables.