Whole Life Insurance Differs from Term Life in Which of the Following

question 62

Multiple Choice

Whole life insurance differs from term life in which of the following ways?

• A)Whole life has a variable premium over the life of the policy, increasing as the policyholder gets older.Term life has a fixed premium forever
• B)Term life has a savings component whole life is pure insurance
• C)Term life is usually more expensive than whole life
• D)Whole life is a combination of term life insurance and a savings account

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Definitions:

Return On Total Assets

measures a company's earnings before interest and taxes (EBIT) relative to its total assets, indicating efficiency in using assets to generate profits.

Times Interest Earned Ratio

A financial metric that measures a company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes.

Return On Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how efficiently a company uses its assets to generate profit.

Year 2

Typically refers to the second year in a given context, such as the second year of a business, investment, or educational program.