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Which of the Below Is TRUE of Whole Life Insurance

Question 1

Multiple Choice

Which of the below is TRUE of whole life insurance?


A) The actuarial cost of pure insurance increases with age, but the premium charged on whole life insurance decreases.
B) Whole life insurance builds up a cash value that can be withdrawn and can also be borrowed against by the owner of the policy.
C) A major disadvantage of whole life insurance is that the inside buildup is subject to taxation.
D) The death benefit of the whole life insurance policy is always subject to estate tax.

Correct Answer:

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