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Planning Intermediate: Variable and Universal Life Insurance

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1.
Variable life insurance policies allow you to take advantage of changing market conditions.
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True. You can allocate your money among stock, bond, and money market funds, and change your allocations as market conditions change.
2.
Variable life insurance policies have fixed premiums.
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True. Like whole life policies, variable life uses fixed premiums.
3.
Which of the following is not true of universal life insurance policies?
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They dont disclose insurance and expense costs. One of the distinguishing features of universal life is that it discloses monthly costs of insurance and other expenses.
4.
There is no market risk involved in variable life insurance policies.
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False. Your actual results will depend on the market performance of the underlying investments.
5.
With universal life insurance, your death benefit may change over the term of the policy.
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True. Universal life gives you the option of changing premiums or life insurance coverage levels.