Question

A whole life policy that provides a choice of dividend options includes the following statement about dividends:

A. They accrue at a guaranteed rate.
B. They are deferred for one year.
C. They are not guaranteed.
D. They are guaranteed after the first year.

Answer 1

Dividends in a whole life policy that provides a choice of dividend options are not guaranteed and can vary based on the financial performance of the insurance company.

Step-by-step explanation:

A whole life policy that provides a choice of dividend options includes the following statement about dividends: C. They are not guaranteed.

Dividends are not guaranteed in a whole life policy that provides a choice of dividend options. This means that the amount of dividends received can vary and is dependent on the financial performance of the insurance company. It's important to note that dividends are not guaranteed and can fluctuate over time.