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With traditional whole life insurance:
Suggested Answer: C
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12 comments · newest first
AS
Asuncion
3 months ago
D seems off. Debt rates don’t apply here, right?
DA
Daren
3 months ago
I’m leaning towards C. It’s locked in, which is safer for policyholders.
DA
Daniel
3 months ago
I think option A makes the most sense. Interest rates change over time.
VI
Vicky
3 months ago
D sounds off, I don't think there's a debt rate involved.
EA
Earnestine
3 months ago
C seems to make the most sense to me.
AN
Andrew
4 months ago
Wait, I thought interest rates were always locked in?
RO
Rodolfo
5 months ago
I think B is the right answer, not A.
AR
Arlene
5 months ago
A is definitely correct, that's how it works.
AD
Adaline
6 months ago
I don’t recall much about debt rates in this context. I thought whole life insurance primarily dealt with interest and expense rates.
AR
Arminda
6 months ago
I’m leaning towards option C because I remember something about interest rates being locked in at the time of policy issuance, but I could be mixing it up with another topic.
GE
German
6 months ago
I feel like we practiced a similar question where the expense rate was mentioned. I think it was explicit and locked in, but I can't recall the details.
CH
Chantay
6 months ago
I think I remember that the interest rate is usually implicit in the premium, but I'm not sure if it's locked in or unlocked at issuance.