The correct answer is: A. Upper
The HLV concept helps to determine the upper limit beyond which life insurance could be speculative. This is because the HLV concept takes into account the fact that life expectancy is not a fixed number, but rather a range of possible values. This means that there is always a chance that an individual will live longer than their life expectancy, and that the insurance company will have to pay out a claim for a longer period of time than they had anticipated.
The HLV concept helps to mitigate this risk by setting an upper limit on the amount of life insurance that can be purchased. This limit is based on the individual’s age, health, and other factors. By setting this limit, the insurance company can ensure that they are not taking on too much risk, and that they will be able to pay out claims even if the individual lives longer than their life expectancy.
The other options are incorrect because they do not accurately reflect the purpose of the HLV concept. Option B, “Lower”, is incorrect because the HLV concept does not set a lower limit on the amount of life insurance that can be purchased. Option C, “Middle”, is incorrect because the HLV concept does not set a middle limit on the amount of life insurance that can be purchased. Option D, “All of the above”, is incorrect because the HLV concept only sets an upper limit on the amount of life insurance that can be purchased.