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A Life Insurance Policyholder May No Longer Need Life Insurance

Question 50

Multiple Choice

A life insurance policyholder may no longer need life insurance.Such a policyholder may sell the policy to a third party for more than its cash value.The purchaser becomes the new beneficiary and is responsible for subsequent premium payments.Such a financial transaction is called a(n)


A) collateral assignment.
B) accelerated death benefits rider.
C) absolute assignment.
D) life settlement.

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