Question
a.
They provide a hedge against inflation.
b.
Initial marketing and other costs can reduce the amount of cash value accumulated in earlier years.
c.
They offer high returns, making them an attractive investment option.
d.
The guaranteed yield is typically higher than that of other financial instruments.
Posted under IC38 Life Insurance Agent Exam
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. What is one of the disadvantages of cash value life insurance contracts?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. The principle of risk pooling in life insurance primarily serves to:Which document serves as evidence of the life insurance contract and contains all the terms and conditions of the insurance?
View solution
Q. The principle of risk pooling in life insurance primarily serves to:
View solution
Q. What does the sum assured in a life insurance policy imply?
View solution
Q. What is one of the advantages of life insurance as a financial product?
View solution
Q. What is one of the disadvantages of life insurance as a financial product?
View solution
Q. In financial terms, what is an asset?
View solution
Q. What does the Human Life Value (HLV) concept measure?
View solution
Q. What is a characteristic of a level premium in a life insurance policy?
View solution
Q. How can mutuality help reduce risk in financial markets?
View solution
Q. What does the element of guarantee in a life insurance contract imply?
View solution
Q. How does diversification reduce risks in financial markets?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.
Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!
