All categories

3 years ago

Term insurance has value as an investment. True False

Mathematics

2 answers:

ycow [4]3 years ago

6 0

Answer: False.

Step-by-step explanation:

When an individual bought a term policy, all of his premiums go towards securing the death benefits for the beneficiaries.

So, it does not have any cash value .

It is unlike permanent life insurance.

It only secure death benefits to beneficiary.

It is not meant for investment.

So, it does not have any investment components.

Hence, it is a false statement.

labwork [276]3 years ago

4 0

Answer:

The given statement is false.

Step-by-step explanation:

Term insurance has value as an investment.

This statement is FALSE.

Term insurance is another type of life insurance policy that comes to force, within its specified time period, if the insurer dies. This gives death benefits to the insurer's family. This policy provides insurance cover for a certain period of time. This insurance is not a type of investment or saving. It helps the insurer's family in case of sudden death.

You might be interested in

Need answers ASAP 15 points!

VLD [36.1K]

Answer:

Step-by-step explanation:

Part A: 5/26

Part B: 5/26+ 1/2 which is 18/26 or 9/13

Part C: 5/26 +21/25. 'without replacing' means there is one less option in the bag. So denominator becomes 26-1=25. Numerator is 21 because there are a total of 21 consonants in the alphabet. Since we removed a vowel and not a consonant, it will remain 21.

7 0

3 years ago

An urn contains n white balls andm black balls. (m and n are both positive numbers.) (a) If two balls are drawn without replacem

Genrish500 [490]

DISCLAIMER: Please let me rename b and w the number of black and white balls, for the sake of readability. You can switch the variable names at any time and the ideas won't change a bit!

Case 1: both balls are white.

At the beginning we have $b+w$ balls. We want to pick a white one, so we have a probability of $\frac{w}{b+w}$ of picking a white one.

If this happens, we're left with $w-1$ white balls and still $b$ black balls, for a total of $b+w-1$ balls. So, now, the probability of picking a white ball is

$\dfrac{w-1}{b+w-1}$

The probability of the two events happening one after the other is the product of the probabilities, so you pick two whites with probability

$\dfrac{w}{b+w}\cdot \dfrac{w-1}{b+w-1}=\dfrac{w(w-1)}{(b+w)(b+w-1)}$

Case 2: both balls are black

The exact same logic leads to a probability of

$\dfrac{b}{b+w}\cdot \dfrac{b-1}{b+w-1}=\dfrac{b(b-1)}{(b+w)(b+w-1)}$

These two events are mutually exclusive (we either pick two whites or two blacks!), so the total probability of picking two balls of the same colour is

$\dfrac{w(w-1)}{(b+w)(b+w-1)}+\dfrac{b(b-1)}{(b+w)(b+w-1)}=\dfrac{w(w-1)+b(b-1)}{(b+w)(b+w-1)}$

Case 1: both balls are white.

In this case, nothing changes between the two picks. So, you have a probability of $\frac{w}{b+w}$ of picking a white ball with the first pick, and the same probability of picking a white ball with the second pick. Similarly, you have a probability $\frac{b}{b+w}$ of picking a black ball with both picks.

This leads to an overall probability of

$\left(\dfrac{w}{b+w}\right)^2+\left(\dfrac{b}{b+w}\right)^2 = \dfrac{w^2+b^2}{(b+w)^2}$

Of picking two balls of the same colour.

We want to prove that

$\dfrac{w^2+b^2}{(b+w)^2}\geq \dfrac{w(w-1)+b(b-1)}{(b+w)(b+w-1)}$

Expading all squares and products, this translates to

$\dfrac{w^2+b^2}{b^2+2bw+w^2}\geq \dfrac{w^2+b^2-b-w}{b^2+2bw+w^2-b-w}$

As you can see, this inequality comes in the form

$\dfrac{x}{y}\geq \dfrac{x-k}{y-k}$

With x and y greater than k. This inequality is true whenever the numerator is smaller than the denominator:

$\dfrac{x}{y}\geq \dfrac{x-k}{y-k} \iff xy-kx \geq xy-ky \iff -kx\geq -ky \iff x\leq y$

And this is our case, because in our case we have

$x=b^2+w^2$
$y=b^2+w^2+2bw$ so, y has an extra piece and it is larger
$k=b+w$ which ensures that k<x (and thus k<y), because b and w are integers, and so b<b^2 and w<w^2