Rhonda noticed an insurance ad that described the premium as a deposit. What does this mean?

a. The premium will be returned in full upon the insured's demand.

b. The premium, plus interest will be returned upon the insured's demand.

c. The premium will accrue interest and build the policy's cash value.

d. The premium, minus expenses, will be returned upon the insured's demand.

Answer: A

Insurance

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