Question

Which of the following insurance recommendations will result in a positive cash flow? Group of answer...

Which of the following insurance recommendations will result in a positive cash flow?

Group of answer choices

Increasing the amount of current coverage.

Change name of beneficiary to someone with a better credit score

Raise insurance deductibles.

Purchase a new life insurance policy.

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Answer #1

Option C is correct

Raising insurance deductibles results in a positive cash flow because with more deductibles we pay less in taxes.

Option A is incorrect because Increasing the amount of current coverage will result in negative cash flow because this increases cash outflow.

Option B is incorrect because Changing the name of beneficiary to someone with a better credit score will have no impact on the cash flow

Option D is incorrect because Purchasing a new life insurance policy will result in negative cash flow because of the increase in insurance premium

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