Which among the following is a limitation of traditional life insurance products?

A. Yields on these policies is high

B. Clear and visible method of arriving at surrender value

C. Well defined cash and savings value component

D. Rate of return is not easy to ascertain

Answer: Option D

Solution(By Examveda Team)

Rate of return is not easy to ascertain in traditional life insurance products. A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.