If the Policy Owner Decides to Terminate the Policy Prior

question 170

Multiple Choice

If the policy owner decides to terminate the policy prior to death, the remaining cash value can be used in a variety of ways. What is this called?

• A)Non-forfeiture options
• B)Cash value options
• C)Non-participating options
• D)Payout options

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, which contributes towards covering fixed costs and generating profit.

Cost Volume Profit Graph

A graphical representation that shows how changes in cost, volume, and profit affect a company's financial situation.

Break-Even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.

Total Revenue Line

A graphical representation showing how a company's total revenue changes with different levels of output or sales volume.