Which of the following statements about universal life insurance is (are) true?
I. The current interest rate credited to the cash value at the time the policy is issued remains fixed for the life of the policy.
II. A monthly deduction is made from the policy's cash value for the cost of insurance protection.
A) I only
B) II only
C) both I and II
D) neither I nor II
Question 2
All of the following statements about ordinary life insurance are true EXCEPT
A) Premiums are level throughout the policy period.
B) The face amount of the policy is paid if the insured lives to age 65.
C) There is a build-up of cash value that can be borrowed by the policyholder.
D) It offers the policyholder the flexibility to meet a wide variety of financial objectives.
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