Select the correct answer.
Which is a feature of permanent insurance?
A. It provides protection for a specific period.
B. It includes an investment component.
C. It is relatively low cost.
Answer (2)
Permanent insurance offers lifelong protection and includes an investment component, allowing cash value accumulation. It contrasts with term insurance, which covers only a specific period. While it may be more expensive than term insurance, it serves a dual purpose of providing insurance and investment benefits. ;
The correct answer is B: It includes an investment component, which is a key feature of permanent insurance. This type of insurance provides lifelong protection while allowing policyholders to build cash value over time. Although it tends to be more expensive than term insurance, it is valuable for long-term financial planning.
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