Which Statement Is True Regarding Using Interest-Adjusted Cost Data and Purchasing

question 18

Multiple Choice

Which statement is true regarding using interest-adjusted cost data and purchasing life insurance?

• A)Interest adjusted cost data cannot be used to analyze whole life policies.
• B)The type of policy you purchase should he based solely on a cost index.
• C)Small variations in cost indices should be ignored.
• D)Cost indices should be used to select an insurer,not an individual policy.

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Definitions:

Four Utilities

Refers to the satisfaction or value that customers receive from a product, encompassing form, time, place, and possession utilities.

Marketing Creates

The process through which marketing efforts lead to the creation of value, demand, and brand identity.

Possession

The state or fact of owning, controlling, or having an object, property, or asset.

Form Utility

The value added by the process of transforming raw materials into a finished product that is more useful to consumers.