Question

How does premium frequency affect withdrawal rates?

a.

Single premium contracts have higher withdrawal rates compared to regular premium plans

b.

Regular premium plans offer more opportunities for withdrawal compared to monthly premiums

c.

Withdrawal rates are not affected by the frequency of premium payments

d.

Single premium contracts typically have lower withdrawal rates compared to regular premium plans

Answer: (d).Single premium contracts typically have lower withdrawal rates compared to regular premium plans Explanation:Single premium contracts are expected to have lower withdrawal rates compared to regular premium plans, as there are fewer opportunities for withdrawal.

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Q. How does premium frequency affect withdrawal rates?

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