The correct answer is: C. Both A & B
Traditional cash value plans and non-traditional plans are both types of products in which protection and saving elements are separated.
Traditional cash value plans are whole life insurance policies that have a cash value component. The cash value component grows tax-deferred, and can be used for a variety of purposes, such as retirement savings, college savings, or a financial cushion in case of an emergency.
Non-traditional plans are variable life insurance policies that have a separate account component. The separate account component invests in a variety of assets, such as stocks, bonds, and mutual funds. The performance of the separate account determines the amount of cash value that grows over time.
Both traditional cash value plans and non-traditional plans offer a way to protect your loved ones in the event of your death, while also providing a way to save for the future. The best type of plan for you will depend on your individual needs and circumstances.
Here is a brief explanation of each option:
A. Traditional cash value plans
Traditional cash value plans are whole life insurance policies that have a cash value component. The cash value component grows tax-deferred, and can be used for a variety of purposes, such as retirement savings, college savings, or a financial cushion in case of an emergency.B. Non-traditional plans
Non-traditional plans are variable life insurance policies that have a separate account component. The separate account component invests in a variety of assets, such as stocks, bonds, and mutual funds. The performance of the separate account determines the amount of cash value that grows over time.C. Both A & B
Both traditional cash value plans and non-traditional plans offer a way to protect your loved ones in the event of your death, while also providing a way to save for the future. The best type of plan for you will depend on your individual needs and circumstances.D. None of the above
This option is incorrect because both traditional cash value plans and non-traditional plans offer a way to separate protection and saving elements.