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which of the following statements about variable life insurance is true

by Nya Kunde Published 1 year ago Updated 8 months ago
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4. Which of the following statements about variable life policies is/are TRUE? I. The withdrawal value is not guaranteed. -TRUE II. The volatility of the returns depends on the investment strategy of the fund. -TRUE III. The variable life policy holder has direct control over investment decisions of the variable life funds. -FALSE I, II and III

Full Answer

What are the characteristics of a life insurance policy Ann is considering?

Which of the following statements about a variable life insurance policy is (are) TRUE? 1. There is a guaranteed interest rate for the death benefit II. The policy premiums may increase or decrease depending on market conditions I only ll only both I and 11 neither I nor 11

What are the characteristics of a flexible premium life insurance policy?

All of the following statements about variable life insurance are true EXCEPT: a. Variable life insurance combines life insurance with a mutual fund. b. Variable life insurance provides a minimum guaranteed rate of return, but the actual return can be …

Which type of life insurance has fixed premium payments?

Which of the following statements about a variable universal life insurance policy is (are) true? I ) There is a minimum guaranteed interest rate for the cash value. II ) The policyowner has a variety of investment options for the savings component of the policy. 38. I only 39. II only 40. both I and II 41. neither I nor II Answer: B

When can the policyowner add to a policy's cash value?

The following are characteristics of a variable life insurance policy: I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets.-TRUE TRUE II. Its protection costs are generally met by implicit charges.-FALSE FALSE III.

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What is true about variable life insurance?

Variable life insurance is a permanent life insurance policy, meaning it lasts until the policyholder's death, combined with a cash-value account invested in bonds or stocks.

Which statement describes a variable life insurance policy?

A variable life policy invests premiums in a separate account holding a designated mutual fund, usually a growth fund. The insurance company gives a minimum guaranteed death benefit, which cannot fall below a set amount, regardless of how poorly the separate account performs.

Which of the following are the features of a variable life insurance policy quizlet?

Variable life policies have a guaranteed minimum death benefit, which is the policy face amount, but the policy cash value is not guaranteed since it is tied to the separate account.

Which of the following is true with regards to a variable universal life policy?

The variable universal life policy DOES have cash value that varies with the performance of the investment. The correct answer is: It has no cash value.

What is variable insurance Trust?

NVIT Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.

What is variable life insurance quizlet?

What is Variable Life? -Permanent life insurance with investment flexibility. -Level premium. -Policyholder's separate investment account for cash value (CV)

What are the features of a variable life insurance policy?

Variable universal life is a type of permanent life insurance policy. Its features include cash value, investment variety, flexible premiums and a flexible death benefit.

Which of the following are features of a variable insurance plan?

Variable Life Insurance – CharacteristicsPremium. As with any life insurance policy, variable life insurance mandates the beneficiary to pay premiums into an account. ... Death benefit. Like any other life insurance, variable life insurance provides a death benefit. ... Policy loans. ... Investment options.

Which of the following is a feature of a variable annuity?

A typical variable annuity offers three basic features not commonly found in mutual funds: tax-deferred treatment of earnings; a death benefit; and. annuity payout options that can provide guaranteed income for life.

What differentiates variable life insurance from variable universal life?

The key difference between variable and universal life insurance is the way the cash value grows. While variable life insurance gives you investment options to grow your cash value, the cash value in a universal life insurance policy grows at a rate set by the insurer.

How does a variable universal life insurance work?

Variable universal life (VUL) insurance is a form of permanent life insurance. It combines the main benefit of life insurance—a financial payout to your loved ones when you die—with investment subaccounts. These investment subaccounts can be used to invest the cash value of your policy.Nov 22, 2021

How is variable whole life different from variable universal life?

Whole life and universal life insurance are both types of permanent life insurance. Whole life insurance offers consistent premiums and guaranteed cash value accumulation, while a universal policy provides flexible premiums and death benefits.

What is the difference between variable and traditional life insurance?

Traditional participating life policies aim to produce steady return by smoothing out market fluctuations, while variable life insurance policies offer the potential for higher returns but at the expense of market volatility and higher risk. -TRUE II. Variable life insurance products can take the form of whole life or endowment policies but traditional participating life policies do not. -FALSE III. The investment of variable life insurance policies is made known on the onset and is invested in a separately identifiable fund, which is made up of units of investment. -TRUE

How are withdrawal value and protection benefits determined?

I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets. -TRUE II. Its protection costs are generally met by implicit charges. -FALSE III. Its commissions and company expenses are met by a variety of explicit charges, notice of which is given by life companies normally 6 months prior to any change in such charges. -TRUE IV. Its withdrawal value is normally the value of units allocated to the policyholder calculated at the bid price -TRUE

Is there a fixed term in a variable life policy?

I. There is no fixed term in a single premium variable life policy and therefore, they are technically whole life insurance -TRUE II. Top-ups or single premium injections are allowed -TRUE III. Policyholders have the flexibility of varying the life coverage -TRUE

Is rebating under the insurance code true?

I. Rebating is prohibited under the Insurance Code -TRUE II. Rebating deals with offering the prospect a special inducement to purchase a policy -TRUE III. Rebating will enhance the sales performance and uphold the prestige of an agent -FALSE

How are withdrawal value and protection benefits determined?

I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets. -TRUE II. Its protection costs are generally met by implicit charges. -FALSE III. Its commissions and company expenses are met by a variety of explicit charges, notice of which is given by life companies normally 6 months prior to any change in such charges. -TRUE IV. Its withdrawal value is normally the value of units allocated to the policyholder calculated at the bid price -TRUE

Is there a fixed term in a variable life policy?

I. There is no fixed term in a single premium variable life policy and therefore, they are technically whole life insurance -TRUE II. Top-ups or single premium injections are allowed -TRUE III. Policyholders have the flexibility of varying the life coverage -TRUE

Is rebating under the insurance code true?

I. Rebating is prohibited under the Insurance Code -TRUE II. Rebating deals with offering the prospect a special inducement to purchase a policy -TRUE III. Rebating will enhance the sales performance and uphold the prestige of an agent -FALSE

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