A Disadvantage of Using a Whole Life Policy for Saving

question 17

Multiple Choice

A disadvantage of using a whole life policy for saving is:

• A) earnings outside the policy can be greater
• B) federal income tax must be paid on the yearly cash value increases
• C) creditor protection is available if bankruptcy occurs
• D) since premiums must be paid to keep the policy in force, there is the semi-compulsory nature of saving

---

Definitions:

HR Metrics

Quantitative measures used to track and assess the efficiency and effectiveness of HR policies, practices, and outcomes.

Recruitment Cost

The total expenses incurred by an organization in the process of finding and hiring new employees, including advertising, interviewing, and training costs.

Time-To-Hire

The duration between initiating the search for a new employee and the moment the selected candidate accepts the job offer.

Turnover Rate

The rate at which an organization loses employees and needs to replace them within a certain period.