Question 27 (2 points) Debbie is the insured under a $1 million life insurance policy and has named her daughter, Ashlynn, as her beneficiary. Debbie is concerned that Ashlynn would not know how to manage that much money in the event of her death, and so is considering the "fixed period" and "fixed amount" options as alternatives to just giving her the money as a lump sum. Which of the following statements regarding the specified options is (are) true? (Check al that apply.) Under the "fixed amount" option, Ashlynn would typically be allowed to make partial withdrawals of the $1 million principal if desired. Under the "fixed period" option, the amount of the periodic installment increases with the guaranteed interest rate and decreases with the duration of the fixed period. Under the "fixed period" option, Ashlynn would typically be allowed to make partial withdrawals of the $1 million principal if desired. Under the "fixed amount option, the duration of the periodic installment increases with both the guaranteed interest rate and the fixed amount. Under both options, the portion of each periodic payment that represents interest earned on the $1 million is subject to taxation in the year the payment is received Question 27 (2 points) Debbie is the insured under a $1 million life insurance policy and has named her daughter, Ashlynn, as her beneficiary. Debbie is concerned that Ashlynn would not know how to manage that much money in the event of her death, and so is considering the "fixed period" and "fixed amount" options as alternatives to just giving her the money as a lump sum. Which of the following statements regarding the specified options is (are) true? (Check al that apply.) Under the "fixed amount" option, Ashlynn would typically be allowed to make partial withdrawals of the $1 million principal if desired. Under the "fixed period" option, the amount of the periodic installment increases with the guaranteed interest rate and decreases with the duration of the fixed period. Under the "fixed period" option, Ashlynn would typically be allowed to make partial withdrawals of the $1 million principal if desired. Under the "fixed amount option, the duration of the periodic installment increases with both the guaranteed interest rate and the fixed amount. Under both options, the portion of each periodic payment that represents interest earned on the $1 million is subject to taxation in the year the payment is received
