The Case in Point on terminal illness and life insurance suggests that a patient with a terminal illness can expect to sell his or her life insurance policy for a ________ amount if his or her life expectancy is ________.

Question

Quizplus · Accepted Answer

A patient with a terminal illness can expect to sell his or her life insurance policy for a higher amount if his or her life expectancy is short. This is because the buyer of the policy will pay a lump sum to the seller and then receive the full death benefit in a shorter amount of time, making the investment more attractive the shorter the life expectancy is.

The Case in Point on Terminal Illness and Life Insurance