Polly Wants the Opportunity to Change the Amount She Pays

question 59

Multiple Choice

Polly wants the opportunity to change the amount she pays for her annual premium through the life of her insurance policy without changing her coverage.Which of the following policies would meet her needs?

• A) Adjustable life
• B) Group life
• C) Limited life
• D) Universal life
• E) Variable life

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, insurance, and salaries, over a certain period.

Composite Unit

A composite unit is an accounting measurement that combines the attributes of multiple units of a similar product or service into a single representation for easier management or evaluation.

Sales Mix

The proportion of different products or services that make up a company's total sales, affecting overall profitability and performance.