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Term Life Insurance (Plan A) Whole Life Insurance (Plan B) 20 years 20 years Term Annual Premium Value $65 Face value of $10.000 $400 Cash

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Term Life Insurance (Plan A) Whole Life Insurance (Plan B) 20 years 20 years Term Annual Premium Value $65 Face value of $10.000 $400 Cash value of $11,000 Dividends of $5.500 Assume an after-tax return of 8%. Which plan is more attractive? Why? A) B) C) D) Plan A because of the annual savings of $335 Plan A with its guaranteed death benefits of $10,000 Plan B as it provides a larger total than the possible accumulation in Plan A Plan B because of the dividend earned Term Life Insurance (Plan A) Whole Life Insurance (Plan B) 20 years 20 years Term Annual Premium Value $65 Face value of $10.000 $400 Cash value of $11,000 Dividends of $5.500 Assume an after-tax return of 8%. Which plan is more attractive? Why? A) B) C) D) Plan A because of the annual savings of $335 Plan A with its guaranteed death benefits of $10,000 Plan B as it provides a larger total than the possible accumulation in Plan A Plan B because of the dividend earned

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