Which among the following is a limitation of traditional life insurance products?

A Yields on these policies is high
B Clear and visible method of arriving at surrender value
C Well defined cash and savings value component
D Rate of return is not easy to ascertain

Correct Answer: Rate of return is not easy to ascertain

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.
Bissoy MCQ
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