Most Family Heads Need Substantial Amounts of Life Insurance

question 54

Multiple Choice

Most family heads need substantial amounts of life insurance.However,with limited income,money spent on life insurance reduces the amount of discretionary income available for other high-priority needs.What an insured person gives up when he or she purchases life insurance instead of using the premium dollars for other purposes is called the

• A)estimated cost of life insurance.
• B)net cost of life insurance.
• C)real (inflation-adjusted)cost of life insurance.
• D)opportunity cost of buying life insurance.

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Definitions:

Perceptual Distortions

Alterations or inaccuracies in the way sensory information is interpreted or represented by the mind.

Hallucinosis

A form of intoxication caused by hallucinogens, consisting of perceptual distortions and hallucinations.

Intoxication

The state of being under the influence of drugs or alcohol, leading to various physiological and psychological effects.

Tobacco

A product prepared from the leaves of the tobacco plant, primarily used for smoking, chewing, or snuffing, containing the addictive substance nicotine.