Question
In: Finance
Which of the following do not help people during their retirement? a. whole life insurance b....
Which of the following do not help people during their
retirement?
a. whole life insurance b. term life insurance c. annuity d.
universal life insurance.
If a financial firm is deemed ______, it poses a risk
to the overall financial system because its failure would cause
widespread damage.
a. systemic, b.financially important c. too-big d.
non-systematic
Solutions
Expert Solution
The correct answer is option b. Term life insurance
Term life insurance is the pure form of insurance meaning it pays off only on the death of the policyholder. It doesn't provide any other benefit even during retirement.
The correct answer is option c. too-big
If a financial firm is deemed too-big, it poses a risk to the overall financial system because its failure would cause widespread damage.
You might have heard the phrase too big to fail.
jeff jeffy answered 2 years agoRelated Solutions
All of the following statements concerning whole life insurance are correct EXCEPT If the whole life...
All of the following statements concerning whole life insurance
are correct EXCEPT
If the whole life insurance premiums are to be paid throughout
the insured’s lifetime, the insurance is known as limited-payment;
if the whole life insurance premiums are to be paid only during a
specified period, the insurance is designed as ordinary life
Whole life insurance offers permanent protection with cash
values, and it can be either
participating or nonparticipating
The protection afforded by the whole life insurance contract...
Investment B is represented by the cash value of a whole life insurance policy. Returns on...
Investment B is represented by the cash value of a whole life
insurance policy. Returns on this Investment for the past 6 years
are detailed in the table below, and Carlo expects the returns of
the next 6 years to be the same as the last 6 years.
Year
Return
1
+4.9%
2
+5.0%
3
+4.6%
4
+5.1%
5
+4.9%
6
+4.8%
9. Taking only the beginning and ending balances of the
investment into account in order to smooth the...
How do term, whole life, and universal life insurance differ? What are the advantages and disadvantages...
How do term, whole life, and universal life insurance differ?
What are the advantages and disadvantages of each policy?
Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....
Standard Insurance is developing a long-life insurance policy
for people who outlive their retirement nest egg. The policy will
pay out $220 comma 000 on your 80 th birthday. You must buy the
policy on your 65 th birthday. The insurance company can earn 7.5%
on the purchase price of your policy. What is the minimum purchase
price the insurance company should charge for this policy? What is
the minimum purchase price the insurance company should charge for
this policy?...
Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....
Standard Insurance is developing a long-life insurance policy
for people who outlive their retirement nest egg. The policy will
pay out $300,000 on your 85th birthday. You must buy the policy on
your 62nd birthday. The insurance company can earn 8.5% on the
purchase price of your policy. What is the minimum purchase price
the insurance company should charge for this policy?
Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....
Standard Insurance is developing a long-life insurance policy
for people who outlive their retirement nest egg. The policy will
pay out $250,000 on your 85th birthday. You must buy the policy on
your 65th birthday. The insurance company can earn 7% on the
purchase price of your policy. What is the minimum purchase price
the insurance company should charge for this policy?
Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....
Standard Insurance is developing a long-life insurance policy
for people who outlive their retirement nest egg. The policy will
pay out $280 comma 000 on your 85 th birthday. You must buy the
policy on your 60 th birthday. The insurance company can earn 9%
on the purchase price of your policy. What is the minimum purchase
price the insurance company should charge for this policy?
Present value. Standard Insurance is developing a long-life insurance policy for people who outlive their retirement...
Present value. Standard Insurance is developing a long-life
insurance policy for people who outlive their retirement nest egg.
The policy will pay out $240,000 on your 80th birthday. You must
buy the policy on your 62nd birthday. The insurance company can
earn 5.5% on the purchase price of your policy. What is the
minimum purchase price the insurance company should charge for
this policy? What is the minimum purchase price the insurance
company should charge for this policy?
Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....
Standard Insurance is developing a long-life insurance policy
for people who outlive their retirement nest egg. The policy will
pay out $220,000 on your 80th birthday. You must buy the policy on
your 65 th birthday. The insurance company can earn 7.5% on the
purchase price of your policy. What is the minimum purchase price
the insurance company should charge for this policy? What is the
minimum purchase price the insurance company should charge for
this policy?
What is the difference between Whole Life Insurance and Term life Insurance policies?
What is the difference between Whole Life
Insurance and Term life Insurance
policies?
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