Home > Planning > Intermediate
Planning Intermediate: Variable and Universal Life Insurance

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Variable life insurance policies have fixed premiums.
Choose wisely. There is only one correct answer.
True. Like whole life policies, variable life uses fixed premiums.
2.
Variable life insurance policies allow you to take advantage of changing market conditions.
Choose wisely. There is only one correct answer.
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 is not true of universal life insurance policies?
Choose wisely. There is only one correct answer.
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.
Choose wisely. There is only one correct answer.
False. Your actual results will depend on the market performance of the underlying investments.
5.
Unlike whole life insurance, universal life _______.
Choose wisely. There is only one correct answer.
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.