When You Purchase a Variable Life Policy,the Insurance Company Assumes

question 140

True/False

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

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Definitions:

Sales Revenue

The full income received from goods sales or service delivery before taking out any operational costs or expenditures.

Return On Investment

A financial metric that calculates the profitability of an investment by dividing the profit (or loss) by the cost of the investment.

Imputed Interest Rate

An estimated interest rate used when the actual interest rate is not known or is not applicable, often used in lease agreements or for calculating the present value.

Divisional Contribution Margin

The difference between sales revenue and variable costs in a specific business division, used to cover fixed expenses and contribute to profits.