How Frequently Does the Premium for a Whole Life Policy

question 104

Multiple Choice

How frequently does the premium for a whole life policy change during the insured's life?

• A)Every year
• B)Every two years
• C)Every five years
• D)Every 10 years
• E)It never changes

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Definitions:

Share Options

Options given by a company to its employees as part of their compensation package, allowing them to purchase shares of the company at a future date at a predetermined price.

Vesting Date

The date on which an employee gains the right to receive benefits or stock options from an employer's plan.

Share-based Payment

A transaction in which the entity acquires goods or services by issuing shares of its equity or share options rather than with cash or other assets.

AASB 2

An Australian Accounting Standards Board standard that specifies the accounting requirements for share-based payment transactions.