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Planning Intermediate: Variable and Universal Life Insurance

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1.
Variable life insurance policies have fixed premiums.
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True. Like whole life policies, variable life uses fixed premiums.
2.
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.
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.
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.
5.
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.