Choose the correct statement.

A. Lower yields are a disadvantage in cash value contracts

B. Discipline in saving is not an advantage in cash value contracts

C. Income Tax advantage is not an advantage in cash value contracts

D. Safe and secure investment is not an advantage in cash value contracts

Answer: Option A

Solution(By Examveda Team)

Lower yields are a disadvantage in cash value contracts. Whole life insurance is significantly more expensive. Premiums are often much higher than a term life insurance policy with the same amount of coverage because you're paying for an insurance policy as well as putting money into the cash value portion of the policy.