If a Beneficiary Wants to Make Sure That the Life

question 36

Multiple Choice

If a beneficiary wants to make sure that the life insurance proceeds being paid out are not exhausted before he or she dies,the beneficiary would choose which of the following settlement options?

• A)Lump sum or income for life
• B)Income for life or interest income
• C)Interest income or income for a specific period
• D)Income of a specific amount or income for a specific period

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Definitions:

Net Realizable Value

The estimated selling price of goods, less the costs of their sale or disposal.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on payments.

Operating Expense

Costs necessary for maintaining the day-to-day operations of a business, excluding costs associated with the production of goods or services.

Net Price Method

A pricing strategy that applies discounts and allowances to the gross price to determine the final sale price.