The rate of return on cash-value life insurance has historically been well ahead of what can be achieved by a diversified portfolio of stock and bond mutual funds.

Question

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This statement is false. Historically, the rate of return on cash-value life insurance has been lower than what can be achieved by a diversified portfolio of stock and bond mutual funds. In addition, the fees and commissions associated with cash-value life insurance can significantly reduce the overall return.

The Rate of Return on Cash-Value Life Insurance Has Historically