To Understand the Different Versions of Cash-Value Life Insurance Policies

question 118

Multiple Choice

To understand the different versions of cash-value life insurance policies that pay a variable return,you must evaluate

• A)the cost of the insurance protection portion.
• B)the rate of return on the invested funds.
• C)the company's expense charges.
• D)(All of these)

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Definitions:

Certificate of Deposit

A bank-issued financial instrument that offers a fixed interest rate over a specified period of time.

Note

A written promise to pay a specified amount of money at a given time or on demand.

Distinguish

To recognize or treat as different in some respect due to distinct characteristics or features.

Negotiable

Capable of being bargained or discussed to reach a mutual agreement, often used in the context of contracts, terms, or financial instruments.