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Which statement is NOT characteristic of life insurance as property?

  1. It may be paid for in installments

  2. It requires a fund portfolio manager

  3. It creates an immediate estate

  4. It requires no physical maintenance

The correct answer is: It requires a fund portfolio manager

Life insurance is considered a form of property due to the financial benefits it provides to policyholders and beneficiaries. The statement that it requires a fund portfolio manager is not characteristic of life insurance. Life insurance policies operate on the principle of risk pooling, where premiums collected are used to pay out claims upon the insured's death. This means policyholders do not need to actively manage a portfolio of investments or work with a fund manager. Instead, the insurance company manages the collected premiums and invests them to ensure there are sufficient funds to meet future claims. In contrast, life insurance does have characteristics such as being able to pay the premiums in installments, creating an immediate estate (the policy benefit is paid out immediately upon the death of the insured), and requiring no physical maintenance (unlike physical properties, life insurance policies do not require upkeep or management). These aspects highlight the nature of life insurance as a financial asset rather than a traditional type of property.