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.
With universal life insurance, your death benefit may change over the term of the policy.
Choose wisely. There is only one correct answer.
True. Universal life gives you the option of changing premiums or life insurance coverage levels.
2.
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.
3.
Which of the following insurance products does not entail market risk?
Choose wisely. There is only one correct answer.
Universal life. Universal life is a fixed-interest product, and the insurance company provides a guaranteed minimum return.
4.
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.
5.
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.