The Term "Variable" in a Variable Life Policy Refers to the

question 24

Multiple Choice

The term "variable" in a variable life policy refers to the

• A)policyholder's ability to vary the premiums.
• B)insurer's ability to vary the rate of return on the policy.
• C)variable growth rate of the cash value of the policy.
• D)insurer's ability to vary the premiums.
• E)the policyholder's ability to cancel the plan.

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Definitions:

Current Ratio

A financial metric used to assess a company's liquidity by dividing current assets by current liabilities, indicating its ability to pay short-term obligations.

Break-even Point

The break-even point is the point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor suffering a loss.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Net Margin

A profitability metric calculated as net income divided by revenue, expressing the percentage of revenue that remains as profit after all expenses are deducted.