All of the Following Statements Describe the Flexibility Available to the Owner

question 17

Multiple Choice

All of the following statements describe the flexibility available to the owner of a universal life insurance policy EXCEPT

• A)Policy loans are permitted on an interest-free basis.
• B)The frequency of premium payments can be varied.
• C)The death benefit can be increased with evidence of insurability.
• D)Premium payments can be any amount provided there is sufficient cash value to keep the policy in force.

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Definitions:

Constant Prices

Prices that have been adjusted for inflation, allowing for the comparison of economic data over time without the effects of price level changes.

Durable Goods

Durable goods are items with a long useful life, typically three years or more, such as appliances and vehicles, which consumers purchase with the expectation that they will not need to be replaced frequently.

Capital Equipment

Long-term assets such as machinery, vehicles, or infrastructure that a business uses in its operations to produce goods or services.

Depreciation

Depreciation is the process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in the asset's value over time.