Which Statement Is True Regarding Using Interest-Adjusted Cost Data and Purchasing

question 18

Multiple Choice

Which statement is true regarding using interest-adjusted cost data and purchasing life insurance?

• A) Cost indices can help to determine whether a policy should be replaced.
• B) The type of policy you purchase should he based solely on a cost index.
• C) Small variations in cost indices should be ignored.
• D) Cost indices should be used to select an insurer, not an individual policy.

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