Which of the following rates of return in a cash-value life insurance policy does the agent tend to focus on and which should the purchaser focus on?

Question

Quizplus · Accepted Answer

The agent tends to focus on the current rate of return, which is the rate of return the policy has earned in the recent past, and also the rate of return promised for the near future. On the other hand, the purchaser should focus on the guaranteed minimum rate of return, which is the minimum rate of return the policy will earn, regardless of how the market performs. Therefore, B is the best choice.

Which of the Following Rates of Return in a Cash-Value