Which of the Following Statements Regarding the Accidental Death Benefit

question 4

Multiple Choice

Which of the following statements regarding the accidental death benefit rider (also known as double indemnity) is true?

• A)Adding the accidental death benefit rider doubles the premium for the policy.
• B)Financial planners agree that adding the accidental death benefit rider is a wise purchase.
• C)The economic value of a human life is doubled or tripled if death is caused by an accident,justifying the purchase of the rider.
• D)The death benefit is doubled only if an accidental injury is the direct cause of death and death occurs prior to a specified age.

Differentiate between joint products and by-products and understand the methods for costing and decision-making related to each.

Understand the concept of joint costs and their relevance in decision-making.

Distinguish between sunk costs, opportunity costs, and relevant costs for decision-making.

Apply various methods for allocating joint costs in different scenarios.

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