A Settlement Option That Provides for Payment of the Life

question 124

Multiple Choice

A settlement option that provides for payment of the life insurance proceeds in equal periodic installments for a specified number of years after your death is called a:

• A)flexible annuity.
• B)limited installment payment.
• C)life income option.
• D)lump-sum payment.
• E)proceeds left with the company.

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Definitions:

Marginal Cost

The heightened cost incurred by the production of an additional unit of a good or service.

Monopoly Power

Monopoly power refers to the ability of a single provider to control the market for a good or service, enabling them to set prices without concern for competition.

Short-run

A period in which at least one input is fixed, limiting the ability of the firm to adjust its production levels.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of paying for a good or service and what they end up paying.