With a Variable Life Insurance Policy,many People Choose to Supplement

question 17

True/False

With a variable life insurance policy,many people choose to supplement their retirement income by withdrawing some of the investment portion as an annuity to provide regular income.

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Definitions:

Investment Risk

The possibility that an investment's actual return will differ from the expected return, including the potential loss of some or all of the original investment.

Global Consumption Smoothing

An economic principle that suggests individuals can optimize their lifetime well-being by spreading consumption over their lifetime, influencing savings and investments.

Tax Shelters

Tax Shelters are investment options or financial strategies used to minimize or avoid taxes, taking advantage of legal provisions to reduce tax liabilities.

Roth Retirement Plan

A retirement savings plan allowing a person to contribute after-tax income, with withdrawals being tax-free under certain conditions.