If You Are Uncertain Whether You Will Need Life Insurance

question 29

Multiple Choice

If you are uncertain whether you will need life insurance beyond the age of 65, which of the following features should you chose?

• A)Renewability option
• B)Conversion option
• C)Nonforfeiture option
• D)Participating option
• E)Retractable option

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Definitions:

Involuntary Intergenerational Transfer

The unintended redistribution of wealth across generations, often due to policies or economic conditions, without the explicit consent of those affected.

Tax-sheltered Investment

A financial arrangement designed to reduce or delay taxes on investments, allowing the investor to benefit from compound growth without immediate taxation.

Stocks

Financial instruments representing ownership shares in companies, allowing investors to benefit from profits and appreciation in value.

Roth Retirement Plan

A type of retirement plan where contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free.