Which of the Following Policies Will Not Give You a Cash

question 36

Multiple Choice

Which of the following policies will not give you a cash settlement if you terminate the policy?

• A) Whole life
• B) Universal life
• C) Decreasing term life
• D) Variable life

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing profits.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the market price per share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' equity.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.