A Guaranteed Purchase Option Is When an Insured Sells an Interest

question 151

True/False

A guaranteed purchase option is when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary.

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Definitions:

Shortage

A situation where the demand for a product or service exceeds its supply in a market.

Binding Price Floor

A government-imposed price control or limit that sets a minimum price for a good or service, above the equilibrium price, causing a surplus in the market.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a certain period of time.

Quantity Demanded

The overall volume of a good or service that customers are ready and financially able to acquire at a certain price point.