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Which is a feature of permanent insurance? A.) it provides protection for a specific period B.) it includes and investment component C.) it is relatively low cost

James Washington

in Mathematics

1 answer

1 answer

Kristi Hammond on December 12, 2018

Answer – B. (It includes an investment component)Permanent insurance has two components-financial, that is to say, the death benefit component and the cash value of the component. The cash value component is the investment component. Is the cash value component that accumulates cash value that the policyholder can withdraw or borrow against. The death benefit component refers to the amount that must be paid to a beneficiary in case of death of an insured.Option a is incorrect because permanent insurance, as the name indicates, it provides a permanent protection and not just for a particular periodOption C is incorrect because permanent insurance is not a relatively low cost. On the contrary, it is the relatively high cost when compared to a temporary insurance.

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