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:

Interest Expense

The cost incurred by an entity for borrowed funds; this expense is a non-operating cost that appears on the income statement.

Total Debt Ratio

A financial metric that compares a company's total debt to its total assets, indicating how much of the company's assets are financed by debt.

Financial Position

A snapshot of the resources and obligations of a company or individual at a specific point in time, indicating the net worth or financial health.

Statement Of Comprehensive Income

A financial statement that includes all changes in equity during a period except those resulting from investments by and distributions to shareholders.