A Disadvantage of Whole Life Policies Is That

question 20

Multiple Choice

A disadvantage of whole life policies is that

• A)the premiums are not predictable.
• B)the premiums are higher than for term policies.
• C)the face value of the policy can change over time.
• D)the cash value is frozen and not available to policyholders.

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Definitions:

Percentage Change

A mathematical calculation that indicates the degree of change over time, expressed as a percentage.

National Income

The total value of all goods and services produced by a country's economy over a specific period, including income received from abroad.

Indirect Business Taxes

Taxes imposed on goods and services that indirectly affect companies, such as sales tax or value-added tax.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.