Types of Policies
A variable whole life owner reallocates policy value among available stock and bond choices. Which account description should the producer use?
Answer and explanation
Answer: D. Variable life allocations are held through separate-account subaccounts tied to underlying investment portfolios, not through the insurer's general account, a policy loan account, or a dividend accumulation account.Source: FINRA — Notice to Members 00-44, Variable Life Insurance — Description Of Variable Life Insurance > separate account and subaccounts
More types of policies questions
- What surrender charge feature is common in fixed annuity contracts during early policy years?
- What type of annuity is purchased with a single lump-sum payment and defers payouts until a specified future date?
- What type of annuity permits the owner to make periodic premium contributions of varying amounts over time before payouts begin?
- What unbundled components characterize a universal life insurance contract?
- When does a joint life (first-to-die) policy pay its death benefit?
- When does a survivorship life (second-to-die) policy pay its death benefit?
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