BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash value grows gradually over time
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If the policy is canceled, you may be entitled to some or all of the accrued cash value
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Policy that accumulates cash value is less expensive than a policy that does not accumulate cash value
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When an insured person dies, the beneficiary will receive the death benefit but the insurance company keeps the cash value
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Detailed explanation-1: -All of the following are characteristics of whole life insurance, EXCEPT: The cash value in a permanent life insurance policy is not a nonforfeiture benefit.
Detailed explanation-2: -Which of the following is not characteristic of a cash-value life insurance policy? The beneficiary receives the sum of the face amount and the cash value.
Detailed explanation-3: -Term life insurance It is sometimes called “pure life insurance” because, unlike whole life insurance, there’s no cash value to the policy. It’s designed solely to give your beneficiaries a payout if you die during the term.
Detailed explanation-4: -Whole life insurance is the simplest form of permanent life insurance, with guarantees for the death benefit amount, premium costs, and cash value growth. Compared to universal life (another form of permanent coverage), whole life typically offers more guarantees but less payment flexibility.