Households save through life insurance reserves, at least in part, because
A)life insurance reserves are very liquid.
B)the transactions costs of saving in this way are very low.
C)life insurance reserves receive favorable tax treatment.
D)life expectancy in the United States has been declining.

Question

Quizplus · Accepted Answer

Life insurance reserves receive favorable tax treatment, which makes them an attractive option for households to save money. They can also provide a sense of security and reassurance for families, as the death benefit can help cover expenses and provide financial support in the event of the policyholder's death. The other options (A, B, and D) are not accurate reasons for why households save through life insurance reserves.

Households Save Through Life Insurance Reserves, at Least in Part