Return-Of-Premium Term Pays Out All Premiums Plus Interest to a Beneficiary

question 87

True/False

Return-of-premium term pays out all premiums plus interest to a beneficiary.

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Definitions:

Average Tax Rate

The portion of total income that is paid as tax, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Proportional Income Tax

A taxation system where the tax rate remains constant regardless of the amount of income.

Average Tax Rate

The percentage representation of total taxes paid in relation to the overall taxable income or expenditure.