All of the following are true regarding Current Assumption Whole Life, except: A Interest rate changes affect policy premiums B The policy has a guaranteed minimum death benefit C The insurer may have to add a corridor of insurance protection to keep the policy from endowing D If current rates decrease, the policyowner pays reduced premiums, or the cash values will grow faster

Question

Social Studies

Averie Fleming

15 January, 11:18

All of the following are true regarding Current Assumption Whole Life, except: A Interest rate changes affect policy premiums B The policy has a guaranteed minimum death benefit C The insurer may have to add a corridor of insurance protection to keep the policy from endowing D If current rates decrease, the policyowner pays reduced premiums, or the cash values will grow faster

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Moss · Answer 1

D If current rates decrease, the policyowner pays reduced premiums, or the cash values will grow faster

Explanation:

If current rates increase (not decrease), either the policyowner pays a reduced premium, or the cash value will increase at a faster rate.