Which of the following statements about the traditional net cost method of measuring the cost of life insurance is (are)true?
I.The traditional net cost method does not consider the time value of money.
II.The traditional net cost method can show that life insurance has a negative cost.

Question

Quizplus · Accepted Answer

The traditional net cost method does not account for the time value of money, and it can indeed show a negative cost for life insurance, especially when dividends or cash value growth are considered.

Which of the Following Statements About the Traditional Net Cost