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A Disadvantage of Using a Whole Life Policy for Saving

Question 5

Multiple Choice

A disadvantage of using a whole life policy for saving is:


A) earnings outside the policy can be greater
B) federal income tax must be paid on the yearly cash value increases
C) creditor protection is available if bankruptcy occurs
D) since premiums must be paid to keep the policy in force, there is the semi-compulsory nature of saving

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