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Planning Intermediate: Variable and Universal Life Insurance

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1.
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.
2.
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.
3.
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.
4.
Life insurance protection in a cash value policy _______.
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Might cost less or more than term insurance. Time horizon is the major determinant.
5.
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.