Types of Policies
In variable life insurance, what most directly causes the policy’s cash value to fluctuate?
Answer and explanation
Answer: B. A variable life policy’s cash value changes with premiums, fees, expenses, and especially the performance of its selected investment options. Beneficiary details and statement frequency do not drive the investment account’s value.Source: SEC — Investor Bulletin: Variable Life Insurance — What Is Variable Life Insurance?
More types of policies questions
- A prospect wants permanent life insurance, wants to choose among stock and bond investment options, and accepts possible cash-value loss. Which product best fits?
- A renewable term policy states that renewal rights end at a specified age. The insured reaches that age and wants another term. Which statement is most accurate?
- A retiree hands an insurer a single premium and wants income payments to start about one month later. Which annuity fits?
- A retiree makes one annuity purchase payment and wants income payments to begin within the next year. Which classification applies?
- A return-of-premium term policy reaches the end of its stated term and the insured is alive. What does the policy pay and what happens to coverage?
- A term insured becomes uninsurable but wants permanent cash-value coverage during the policy’s conversion period. Which feature can meet that objective?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.