Think about what insurers do w/ premium dollars while they wait for claims to come in. if interest rates decline, what is the most likely effect on new life insurance on new life insurance policy rates and the amount of life insurance most young families will need to maintain their lifestyle if the main breadwinner dies? Assume that there is a lot of competition for customers.

a. life insurance rates will decrease & amount of insurance needed will increase

b. life insurance rates will increase and amount of insurance needed will increase

c. life insurance rates will increase and amount of insurance needed will decrease

d. life insurance rates will decrease and amount of insurance needed will decrease.