A Settlement Option That Provides for Payment of the Life

question 124

Multiple Choice

A settlement option that provides for payment of the life insurance proceeds in equal periodic installments for a specified number of years after your death is called a:

• A)flexible annuity.
• B)limited installment payment.
• C)life income option.
• D)lump-sum payment.
• E)proceeds left with the company.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity in a business.

CCA Class

Capital Cost Allowance Class; categories used in Canadian tax law to determine the depreciation rate for tax purposes on tangible and intangible assets.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life to account for the decline in its value over time.

Fixed Assets

Durable physical assets owned and utilized by a company in its operations for the purpose of producing revenue.