Which is a feature of permanent insurance? a. it includes an investment component. b. it provides protection for a specific period. c. it costs less than other forms of life insurance.

Hello there!

Your answer would be A). It includes an investment component.

The reason why answer choice "A). It includes an investment component" would be the correct answer is because Permanent insurance gives benefits that would be a important feature. The features that benefit someone is the "cash value component" and the "death benefit component," The cash value component allows someone to invest, in other words, pay to save money to be used for important reasons in the future. The cash value is also very important for people who out of no where get some sort of health problems and need to money to ensure them the right treatments. Death benefit is another feature that allows someone to get money if the person that holds the insurance dies. This money typically goes to the insurers family. For example, I have permanent insurance that has a death benefit, if I die, my family would get money from my death, and that is a very important feature that would help a family with financial costs, funerals, etc. This is the reason why answer choice "A" would be the correct answer.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20