A Factor That Affects the Cost of a Life Insurance

question 41

Multiple Choice

A factor that affects the cost of a life insurance policy is

• A)the seasons.
• B)inflation.
• C)provincial laws.
• D)federal laws.
• E)the mortality rate.

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Definitions:

Annual Net Operating Cash Inflows

The total cash that flows into a business from its operational activities over a year, minus cash outflows.

Incremental Cost Approach

A method of analyzing the financial information by only considering the expenses and revenues that will change as a result of a decision.

Total Cost Approach

A method in logistics and supply chain management focusing on minimizing the total costs associated with the distribution and storage of products, rather than focusing on individual elements.

Discount Rate

This rate is employed in the process of discounted cash flow analysis to ascertain the present worth of forthcoming cash flows.