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Planning Intermediate: Variable and Universal Life Insurance

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1.
Unlike whole life insurance, universal life _______.
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Doesnt have a fixed premium. With universal life policies, you have the option of adjusting premiums and death benefits over the life of the policy.
2.
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.
3.
Which of the following insurance products does not entail market risk?
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Universal life. Universal life is a fixed-interest product, and the insurance company provides a guaranteed minimum return.
4.
The life insurance policy that offers the most flexibility is _______.
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Variable universal life. This policy combines investment options with the ability to adjust coverage, premiums, and savings.
5.
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.