Yields on these policies is high
Clear and visible method of arriving at surrender value
Well defined cash and savings value component
Rate of return is not easy to ascertain
✅ The correct answer is D.
Rate of return is not easy to ascertain in traditional life insurance products. A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.
Rate of return is not easy to ascertain in traditional life insurance products. A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.