Question

Which type of life insurance accumulates cash value?

A. all these accumulate cash value above

B. Variable life

C. Whole life

D. Universal life

Specific disease and accident policies are;

A. good buys, providing specific coverage at low cost

B. expensive but necessary additions to health insurance

C. poor buys duplicating coverage of more comprehensive policies.

D. recommended for those with low family incomes.

Answer 1

1.Whole life insurance or permanent life insurance which offers death benefit and these also accumulates cash values.

In universal life insurance, the cash value earns interest and based on the current market or minimum Interest rates whichever is higher, and cash value is therefore accumulated.

Variable Life insurance also provides with cash value accumulation facilities.

So the correct answer would be (A) All of these accumulates cash value.

2. Specific disease policies and specific accident policies provides protection against specific disease for a long period of time

So these are(A) Good buys, Providing specific coverage at the low cost.

Low cost must be taken in the sense that it offers with protection for a longer time frame and protect from specific diseases.

So correct option would be (A) good buys, providing specific coverage at low cost.

Rest of the statements State otherwise and therefore false.