Vidyalelo
Commerce · Q519

Insurance

Graduate and Post Graduate · Commerce · question 519

Q519

Which is correct?

A.
It is easy to know cash value and savings value components in a traditional plan
B.
In a traditional life insurance it is not easy to ascertain the rate of return
Answer
C.
Surrender value can easily be arrived at in such policies
D.
Rate of return is always high in such policies

Answer: Option B

Solution

Answer: Option B
Solution:
It is easy to know cash value and savings value components in a traditional plan. Cash value life insurance is a form of permanent life insurance that features a cash value savings component.