Which of the Following Statements Regarding the Different Types of Life

question 28

Multiple Choice

Which of the following statements regarding the different types of life insurance is true?

• A) Term life policies offer a guaranteed rate of return on cash values while variable life policies do not.
• B) Variable life policies offer more investment options than universal life policies.
• C) Whole life policies offer a fixed death benefit while universal life policies vary based on the investment account's performance.
• D) Universal life policies offer less flexibility in making premium payments than do whole life policies.

---

Definitions:

Unit Elastic

A scenario in which a change in price by a certain percentage results in an identical percentage change in the amount demanded or supplied.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price during a specified time period.

Price of Radios

The amount of money required to purchase a radio, influenced by factors such as brand, technology, and market demand.

Very Elastic Demand

A situation where the demand for a product or service significantly changes in response to changes in its price.