Reduction of premium payment would be chosen.
This enables the policyholder to deduct policy dividends from the premium for the next year. Consequently, it will be simpler for the policyholder to pay her subsequent premium.
<h3>What is a dividend?</h3>
A dividend is a cash paid to you by your life insurance provider. This typically signifies that you have a participating policy contract, commonly known as a whole life insurance policy that pays dividends. You receive dividend payments from that company when it is profitable, rewarding your investment. You have the option of receiving this money through dividend options.
<h3>Converting Your Dividend Into Premium</h3>
This dividend option for life insurance is quite simple. If selected, your insurance provider will just use your payout to cover all or a portion of your yearly payment. If you select this option and your dividend is greater than your premium, you might also need to select a secondary alternative. On the other hand, you will need to make the remaining payments as usual if your dividend is less than your premium.
You must begin paying your premium on an annual basis if you decide to use your payout toward it. For instance, you would still need to pay the remaining $6,500 all at once if your annual premium was $8,000 and your dividend was $1,500. You may pay more or less of your premium each year depending on how the dividends change over time.
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Human risks are anything a person could do to make you lose money or do poorly like cancelling appointments last minute and leaving negative online reviews.
Natural risks are forces of nature that could cause problems such as if a storm floods the doggy day care.
Economic risks are changes in the economy, so if there is a recession more people will stop wanting to pay for doggy daycare to save their money.
Answer:
<u>a) Competent parties</u>
Explanation:
This is not an essential element of such a contract because basically we would not expect a minor to be involved in a transaction of a four-family residential resale property.
Remember, competent parties contract requirements are that the two parties in the sale contract should be persons legally and mentally capable of entering into contracts that is enforceable by law.
Due to the clientele effect, different payment policies will draw various types of investors.
What is Clientele effect?
- The clientele effect is a frequent occurrence when shareholder desires have an impact on stock prices.
- The way that a certain category of stocks is sought after by individual investors is one aspect of the clientele effect.
- Dividend clientele, a term denoting a group of stockholders who have similar views on how a certain firm handles its dividend policy, is an example of this effect in action.
- The clientele effect is a shift in share price brought on by business choices that prompts investor responses.
- The clientele effect discusses how the needs and objectives of a company's investors can affect its stock price.
- According to the clientele effect, when a firm changes one or more of its policies, certain investors' stock holdings will change in accordance with their initial attraction to those policies.
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Question Completion:
a. You are interested in looking at the impact of higher prices of imported oil in the overall cost of living.
b. The government is interested in whether increases in defense spending are affecting the price level.
c. An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.
Answer:
The GDP Deflator and the CPI
a. The CPI is used here, as its measure is not restricted to domestically produced goods and services.
b. The GDP Deflator is more appropriate here. Defense spending is not related to consumer goods and services but to government spending, which is a component of the GDP.
c. The GDP Deflator is more appropriate with this investigation. Computers and electronic technology used in production relate to business Investments, which are a component of the GDP and are not part of consumer goods and services or a component of the CPI.
Explanation:
The GDP deflator is exclusively used to measure the prices of all goods and services produced domestically in an economy and is based on the nominal or real GDP. On the other hand, the CPI (Consumer Price Index) is used to measure the weighted average prices of a basket of consumer goods and services, whether produced domestically or imported.
