Which of the Following Are Common Uses of Life Insurance

question 99

Multiple Choice

Which of the following are common uses of life insurance proceeds?

• A) Education of children
• B) Make charitable bequests after death
• C) Pay off the mortgage on a home
• D) Uncovered medical expenses and funeral costs
• E) All of these are common uses.

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Definitions:

Cost

The amount of money or resources expended to obtain, produce, or maintain an object or service.

Sales

The revenue a company earns from selling goods or services.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting operating expenses, interest, and taxes.

Expense

Outflows or using up of assets as a result of the company’s efforts to generate revenue.