Author Question: Which of the following statements about variable life insurance is true? A) Premium payments are ... (Read 55 times)

Themember4 · **on:** Jul 11, 2018

Which of the following statements about variable life insurance is true?

A) Premium payments are flexible.
B) The death benefit cannot be higher or lower than a guaranteed, specified, value.
C) The policyowner has the option of investing the cash value in several investment accounts.
D) The cash surrender value of the policy is guaranteed.

Question 2

All of the following statements about universal life insurance are true EXCEPT

A) Interest is credited to the policy's cash value each month.
B) Any withdrawal of a policy's cash value reduces the amount of the death benefit.
C) Interest credited to a policy's cash value is taxable for the policyowner in the year credited.
D) The policyowner can add to a policy's cash value at any time subject to policy guidelines.