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a.The death benefits an insurance company pays out are financed from returns on the companys investments. If the returns an insurance company can earn on
a.The death benefits an insurance company pays out are financed from returns on the companys investments. If the returns an insurance company can earn on its investments is expected to be relatively low, then managers of the firm will have to charge higher insurance premiums to compensate for the lower expected returns.
True or False
b. Variable universal life (VUL) insurance combines elements of investing in risky assets with that of a life insurance product.
True or False
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