A Method of Evaluating the Cost of Life Insurance by Taking

question 66

Multiple Choice

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

• A) double indemnity.
• B) guaranteed insurability.
• C) an interest-adjusted index.
• D) the consumer price index.
• E) a present value index.

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Definitions:

Digest

A process by which food is broken down into smaller components that can be absorbed by the body, or a summary of information.

Polar

A description of a molecule with a distribution of electric charge leading to one end being positively charged and the other end negatively charged.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, usually in the ratio of 1:2:1, providing energy through metabolism.

Lipids

A broad group of naturally occurring molecules that include fats, oils, waxes, and certain vitamins, characterized by their insolubility in water but solubility in organic solvents.