Which of the Below Is TRUE of Whole Life Insurance

question 8

Multiple Choice

Which of the below is TRUE of whole life insurance?

• A) The actuarial cost of pure insurance increases with age, but the premium charged on whole life insurance decreases.
• B) Whole life insurance builds up a cash value that can be withdrawn and can also be borrowed against by the owner of the policy.
• C) A major disadvantage of whole life insurance is that the inside buildup is subject to taxation.
• D) The death benefit of the whole life insurance policy is always subject to estate tax.

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