If Brent Is Concerned About Not Being Able to Pay

question 167

Multiple Choice

If Brent is concerned about not being able to pay his life insurance premium should he become disabled,he should consider a policy with

• A)a waiver of premium.
• B)cash dividends.
• C)a multiple indemnity clause.
• D)a guaranteed insurability option.

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Definitions:

Coupon Rate

The annual interest rate paid by bond issuers to its bondholders, usually expressed as a percentage of the bond's face value.

Semi-Annually

Occurring twice a year, typically every six months.

Face Value

The nominal or dollar value printed on a security or bond, representing the amount that will be paid back at maturity, not including interest.