The Policy That Will Pay a Specific Dollar Benefit to Beneficiaries

question 75

True/False

The policy that will pay a specific dollar benefit to beneficiaries and remains in effect as long as premiums are paid is called whole life.

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Definitions:

Defined Benefit Pension Plan

A defined benefit pension plan is a retirement plan where the employer promises a specified pension payment upon retirement, based on an algorithm involving salary, age, and years of service.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used in financial reporting and accounting.

Conceptual Framework

An analytical structure used to make the complex interrelationships among financial concepts, objectives, and standards more understandable and coherent.

Accounting Elements

Fundamental categories in financial accounting that include assets, liabilities, equity, revenue, and expenses.