A Disadvantage of Variable Life Policies Is That the Cash

question 105

True/False

A disadvantage of variable life policies is that the cash value may actually decrease in value if stocks or other investments decline.

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Definitions:

Information Content

Information content refers to the degree to which a piece of information can impact an individual's understanding or the market's perception, often used in the context of how financial disclosures affect stock prices.

Fiduciary Responsibility

The obligation to act in the best interest of another party, such as a trustee acting for the benefit of the trust's beneficiaries.