Which of the Following Are Common Uses of Life Insurance

question 12

Multiple Choice

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

• A)provide an education for children
• B)set up an estate plan
• C)establish a regular income for survivors
• D)accumulate savings
• E)All of these are common uses.

---

Definitions:

Deadweight Losses

Economic inefficiencies resulting from market distortions, typically leading to a loss of total societal welfare.

Administrative Burdens

The costs and obligations associated with compliance to rules, regulations, and administrative procedures for businesses and individuals.

Tax Evasion

Tax evasion is the illegal practice of not paying taxes by individuals, companies, or trusts, often by making false declarations or no declarations to tax authorities.

Tax Avoidance

The legal use of tax laws to reduce one's tax burden through various means and financial arrangements.