After taking an introductory course in insurance, your parents ask you what type of life insurance policy they should purchase if they want permanent death protection and the potential for earning a relatively high rate of return on their cash value. Which type of life insurance would you suggest?

Question

Quizplus · Accepted Answer

Variable life insurance policies offer permanent death protection and the ability to invest the cash value in sub-accounts that are similar to mutual funds, allowing for the potential for a relatively high rate of return. The policyholder can choose the type of investments they would like to make, which can range from conservative to aggressive. However, it's important to note that there is also the potential for less favorable returns and higher fees with this type of policy.

After Taking an Introductory Course in Insurance, Your Parents Ask