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20 October, 08:35

A potential client, age 40, would like to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy. which of these statements made by the producer would be correct? straight life accumulates faster than limited-pay life 20-pay life accumulates cash value faster than straight life cash value accumulation of both 20-pay life and straight life depend on the insurer's financial rating 20-pay life and straight life accumulate cash value at the same rate

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  1. 20 October, 08:39
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    I'll just try to rearrange the choices.

    A - straight life accumulates faster than limited-pay life

    B - 20-pay life accumulates cash value faster than straight life

    C - cash value accumulation of both 20-pay life and straight life depend on the insurer's financial rating

    D - 20-pay life and straight life accumulate cash value at the same rate

    My answer would be B. 20-pay life accumulates cash value faster than straight life

    In the above scenario, the 20-pay life policy offers the fastest accumulation of cash value for the 40-year old policy holder compared to the straight life policy.

    20-pay life policy means that policy holder will only pay off the premiums for upto 20 years while being covered by its insurance benefits. It generates faster cash value accumulation because its premiums are higher in value compared to straight life policy.
  2. 20 October, 08:58
    0
    A potential client, age 40, would like to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? 20-pay life accumulates cash value faster than straight life. A 20-pay life policy means that the life of the insurance payment is paid for a total of 20 years. The payments to the policy can be made monthly, quarterly, semi-annually or annually. In a 20-pay policy, cash accumulates faster than a straight life policy due to the cash value that accumulates at a faster rate.
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