Health and Life Insurance

Category - Disability

Why isn’t asset liquidation a good alternative to disability income insurance?
  1. Market price fluctuations
  2. Takes time to receive money
  3. Money is available quick
  4. Penalties and fees
Explanation
Answer: A - Liquidating assets is not considered a good alternative for disability income insurance because of market price fluctuations. When disability occurs, you are at the mercy of the market. If market prices are high you may have a good return and adequate income. However, if market prices are low and asset liquidation is your only option, you could end up losing money on your original investment and having inadequate income resources.
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