Author Question: Consumer experts typically recommend which of the following rules when purchasing life insurance? I. ... (Read 83 times)

ericka1 · **on:** Jul 11, 2018

Consumer experts typically recommend which of the following rules when purchasing life insurance? I. Avoid policies which pay dividends. II. Purchase life insurance equal to ten times your annual salary.

A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

Which of the following statements about the yearly-rate-of-return method (also known as the Belth method) of calculating the yearly rate of return for a life insurance policy is (are) true?

I. The formula requires the use of benchmark prices per 1,000 of protection.
II. The main drawback of the formula is its complexity, necessitating the use of a computer to calculate the rate of return.
A) I only
B) II only
C) both I and II
D) neither I nor II