Types of Policies
Which combination of features most clearly signals variable universal life rather than ordinary whole life?
Answer and explanation
Answer: A. Variable universal life combines universal-life flexibility with separate-account investment exposure. Ordinary whole life generally has fixed policy elements, term life is temporary without cash value, and decreasing term is designed around a falling benefit.Source: NAIC — Life Insurance — Universal Life Insurance, including variable universal life separate-account discussion
More types of policies questions
- What happens if a universal life policy's cash value is insufficient to cover monthly mortality and administrative deductions?
- What happens to the cash value in a decreasing term life policy as the face amount approaches zero?
- What happens to the cost of an increasing term benefit as the insured ages and the coverage amount rises?
- What immediate cash feature distinguishes a single-premium whole life policy from an ordinary whole life policy?
- What indexed feature defines a Fixed Indexed Annuity (FIA)?
- What is an immediate annuity (SPIA) designed to do upon single-premium purchase?
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.