Which of the following statements is true of a term life insurance?
A. A term life insurance policy is administered primarily by the trust departments of commercial banks.
B. The premiums associated with a term insurance policy are fixed payments computed as an average of the premiums required over the expected life of the insured person.
C. A term life insurance offers both insurance coverage and a savings feature.
D. A term life insurance is a relatively short-term contract that provides financial protection for a temporary period.
E. The cost of a term life insurance generally decreases with each renewal as the risk of premature death increases as the insured ages.
Answer: D
You might also like to view...
The debits and credits to Cash in the combination journal are posted
a. daily. b. weekly. c. at the end of the accounting period. d. after each cash transaction.
Which type of relationship is not a nonprofit–corporate relationship?
A. lobbying B. sponsorship C. cause-marketing D. licensing agreement
The following information was obtained from the financial statements of Dow Corp (in millions): Calculate the inventory turnover in days for the Dow Corp
a. 81.1 b. 5 c. 102.7 d. 146
The cost of equity raised by retaining earnings can be less than, equal to, or greater than the cost of external equity raised by selling new issues of common stock, depending on tax rates, flotation costs, the attitude of investors, and other factors.
Answer the following statement true (T) or false (F)