Which of the Following Is not an Advantage of Using

question 35

Multiple Choice

Which of the following is not an advantage of using dividends to purchase paid-up additions of life insurance?

• A) There are no medical exams.
• B) There are no acquisition fees and expenses are minimal.
• C) Paid-up additions have their own cash value.
• D) They produce taxable income.

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Definitions:

Net Value

The actual worth or value of an entity after subtracting liabilities from its assets, often reflecting the financial health and stability of a business or investment.

Tangible Assets

Physical assets that have a defined monetary value and can be touched or seen, such as machinery, buildings, and vehicles.

Tangible Asset

Assets that have physical substance and can be touched, such as machinery, buildings, and land.

Inventory

A complete list or stock of goods and materials held by a business to meet customer demand.