The \"difference\" in the buytermandinvestthedifference strategy is the differen

Question

The "difference" in the buytermandinvestthedifference strategy is the difference in ______________ between term life insurance and whole life insurance. A. Premiums B. Average insured's life expectancy C. expense loads D. dividends

The primary reason life insurance policies have a savings element is to allow the: a.Insured to accumulate funds to aid in the long term financing of private business enterprises b. Insured to obtain lifetime protection at a level premium c.Insurer to reduce the cost of insurance by investing money at high interest rates D. Insured to have money for old age or for other purposes

Explanation / Answer

Buying term and investing the difference is a kind of insurance policy designed for making it less expensive compared to permanent insurance policy. For making it less expensive, the difference gets accumulated by seting a side a fixed amount every month which is equal to the premium of the permanant insurance policy.

So A. Premiums

Life insurance policies without savings elememts attached to them are expensive, so to make them less expensive, policy creators have linked some savings elements to it. So that a fixed amount of policy amount is used in investing and the returns are given back to insurer at the end of the policy. So option
c.Insurer to reduce the cost of insurance by investing money at high interest rates

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