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Commerce · Q393

Insurance

Graduate and Post Graduate · Commerce · question 393

Q393

Which of the below is an advantage of cash value insurance contracts?

A.
Returns subject to corroding effect of inflation
B.
Low accumulation in earlier years
C.
Lower yields
D.
Secure investment
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Secure investment is an advantage of cash value insurance contracts. Cash value life insurance provides more financial flexibility. Because cash values have the potential to grow inside the policy, you may be able to access the cash value while you are living.