Types of Policies
Which combination of features defines a variable universal life (VUL) contract?
Answer and explanation
Answer: B. Variable universal life combines flexible premiums and adjustable death benefits (universal life features) with investment choices in separate accounts (variable features).Source: SEC Investor Bulletin: Variable Life Insurance — Variable Universal Life Overview
More types of policies questions
- A buyer wants permanent life insurance and wants the scheduled premium obligation to end at age 65 while coverage can continue for life. Which policy design fits?
- A buyer wants to fund a deferred annuity through a series of purchase payments rather than one lump sum. Which funding pattern should the buyer select?
- A buyer wants to fund a deferred annuity with one lump-sum purchase payment and make no later premiums. Which funding form fits?
- A client asks why return-of-premium term costs more than ordinary level term for the same face amount and period. What is the correct explanation?
- A client rejects separate-account market risk and also does not want required premiums later recalculated under a current-assumption design. The client wants whole life with required fixed premiums, but with extra credited interest, when available, improving values or helping future premiums. Which design best fits?
- A client wants flexible premiums and an adjustable death benefit, but also wants to place policy value in equity and bond portfolios and accepts that those values can rise or fall with market performance. Which explanation best distinguishes the product from non-variable universal life?
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