A Variable Life Insurance Policy Is Considered Riskier Than a Traditional

question 74

Multiple Choice

A variable life insurance policy is considered riskier than a traditional whole life policy because it:

• A)invests savings more aggressively in securities that are riskier but offer higher potential returns.
• B)has no disability provision to waive premiums in the event of a serious accident or prolonged illness.
• C)may not allow the holder to renew the policy after the initial five year period has elapsed.
• D)pays only a very small death benefit unless the policy holder lives for at least 12 years after taking out the policy.

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Definitions:

Domestic Output

The sum of all products and services generated inside a nation's boundaries.

Migration

The movement of people from one place to another with the intentions of settling, permanently or temporarily, in a new location.

Labor

Human effort used in production which can also include physical and mental effort.

Brain Drain

The emigration of highly trained or intelligent people from a particular country, often due to lack of opportunities or political instability.