The Guaranteed Insurability Option Permits (For an Extra Cost) the Cash-Value

question 78

True/False

The guaranteed insurability option permits (for an extra cost) the cash-value policyholder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.

Perform incremental cost analysis to compare alternative investment options.

Appreciate the significance of the discount rate in the time value of money.

Develop the ability to assess investment projects with uneven cash flows.

Distinguish between simple rate of return and other return on investment metrics.

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Definitions:

Earwax

A natural substance produced by glands in the ear canal that helps to protect the ears from dust, bacteria, and other foreign particles.

Cerebral Vascular Accident

Another term for stroke, a medical condition in which poor blood flow to the brain results in cell death, causing disabilities in speech, movement, or other functions.

Artificial Tears

Eye drops formulated to lubricate the eyes and mimic the properties of real tears.