Which of the Following Is a New Form of Term

question 178

Multiple Choice

Which of the following is a new form of term insurance that guarantees fixed premiums for the life of the policy?

• A) Universal life insurance
• B) Planned annuity life insurance
• C) Declining coverage, fixed payment insurance
• D) Multiyear level-premium insurance

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Definitions:

Future Value

The predicted value of an investment or asset at a specified future date, considering factors like interest rates or returns, often used in financial planning and analysis.

Stated Rate of Interest

The annual interest rate declared on a financial instrument, not accounting for compounding or fees.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or making a profit.

Present Value

The valuation in current terms of a future amount of money or cash inflows, using a specified rate of return.