Looking for the answer to the question below related to Management ?
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?
Options:
| a) Straight life accumulates faster than Limited-pay Life b) 20-Pay Life accumulates cash value faster than Straight Life c) Cash value accumulation of both 20-Pay Life and Straight life depend on the insurer’s financial rating d) 20-Pay Life and Straight Life accumulate cash value at the same rate |
The Correct Answer Is:
- d) 20-Pay Life accumulates cash value faster than Straight Life