Question

What makes it difficult to ascertain the rate of return on traditional life insurance policies?

a.

Easy comparison with other financial instruments

b.

Immediate knowledge of benefits under "With Profit policies"

c.

Transparent method of calculating surrender values

d.

Timing of benefit realization at the contract's end

Answer: (d).Timing of benefit realization at the contract's end Explanation:The rate of return on traditional policies is hard to determine because the value of benefits can only be known when the contract ends.

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Q. What makes it difficult to ascertain the rate of return on traditional life insurance policies?

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