If You Wanted to Provide More Coverage for Your Family

question 70

Multiple Choice

If you wanted to provide more coverage for your family early in life when they need it the most and decrease the amount of benefits in later years,yet continue to pay the same premiums,you should buy a(n) ________ policy.

• A) whole life
• B) decreasing-term
• C) universal life
• D) variable life

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Definitions:

Operating Expenses

The costs associated with running the day-to-day operations of a business, excluding the cost of goods sold.

Average Operating Assets

Average operating assets are calculated by averaging the total value of a company's assets at the beginning and end of an accounting period, used in evaluating asset efficiency.

Minimum Required Rate Of Return

The lowest return on investment that a person or organizational entity, like a company, would accept for a given investment.

Stockholders' Equity

Represents the owners' claim after subtracting total liabilities from total assets; it consists of initial capital investment, retained earnings, and additional paid-in capital.