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practice testMultiple Choice

Practice Test

Question 1 • Advanced Financial Algebra

What is a disadvantage of the whole life insurance option?

Answer
A
lower growth potential
B
market risk
C
no death benefit
D
flexible premiums

Explanation

Whole life insurance provides a death benefit and typically has predictable premiums and cash-value growth. A disadvantage is that its growth potential is often lower than what could be earned through other investments. So the correct choice is “lower growth potential.”

AI-written and checked against the verified answer.

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