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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.
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.
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.
4.
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.
5.
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.