Question
Edith plans to purchase a permanent life insurance policy rather than buying term and investing the difference. Which of the following does NOT support her
Edith plans to purchase a permanent life insurance policy rather than buying term and investing the difference. Which of the following does NOT support her decision?
A) Most people are not inclined to save. Receiving a bill from an insurance company may result in a savings program that would otherwise not be funded.
B) Permanent insurance policies have more variable investment choices available to them than are available in noninsurance investment vehicles.
C) The tax treatment of a life insurance contract generally is more favorable than investing in nondeferred vehicles.
D) The perceived difficulty of getting at money in a permanent contract often discourages individuals from doing so, thereby encouraging policy continuation.
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