Malcolm Would Like to Purchase Life Insurance

question 1

Multiple Choice

Malcolm would like to purchase life insurance.He is concerned that he might need additional life insurance in the future and that he might be uninsurable at that time.What provision can Malcolm add to his life insurance policy that will permit him to purchase additional life insurance at specified times in the future without providing evidence of insurability?

• A)double indemnity rider
• B)guaranteed purchase option
• C)waiver-of-premium provision
• D)accelerated death benefits rider

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Definitions:

Accounts Payable

The amounts owed by a company to its suppliers or creditors for goods or services received but not yet paid for.

Cash Inflows

Money received by a business from various sources, including sales, investments, financing, etc.

Sales to Customers

The revenue generated from selling goods or services to consumers.

Wage Expense

The total cost incurred by a company for employee services, including salaries, wages, bonuses, and other compensation.