Flexible Life Insurance Policies

Question 1

What is a key feature of flexible life insurance policies?

Answer 1

The ability to adjust premium payments and death benefits.

Question 2

True or False: Flexible life insurance policies allow policyholders to change their coverage amount as their needs change.

Answer 2

True

Question 3

Fill in the blank: Flexible life insurance typically includes options for __________ premium payments.

Answer 3

variable

Question 4

Which of the following best describes the investment component of flexible life insurance? A) Fixed B) Variable C) None

Answer 4

B) Variable

Question 5

What is one advantage of choosing a flexible life insurance policy?

Answer 5

It can adapt to changes in financial circumstances or life events.

Question 6

What is adjustable in an adjustable life insurance policy?

Answer 6

face value/death benefit, the premium, and length of coverage

Question 7

Adjustable life, universal life, and equity-indexed life are all examples of

Answer 7

flexible policies

Question 8

Reduces the cash value and death benefit. No federal income tax up to cost basis (i.e., premiums).

Answer 8

Withdrawal (partial surrender)

Question 9

This policy features downside protection, which guarantees that the interest credited to to the cash value will never be below zero.

Answer 9

Equity-Indexed Universal Life

Question 10

A disadvantage to a flexible premium policy is that it is much more ____.

Answer 10

complex

Question 11

True or False

Fixed-premium variable life policies have two death benefit options.

Answer 11

True)

* Option A (option 1) - remains level regardless of increases or decreases in cash value, and;

* Option B (option 2) - varies with fluctuating cash values

Question 12

Fill in the blank

Variable life is whole life with a separate account. “_____” is universal life with a separate account.

Answer 12

Variable universal life

Question 13

True or False

Variable universal life policies can lapse if cash value falls below the amount needed to cover monthly insurance premiums. This means it DOES NOT have a guaranteed minimum death benefit.

Answer 13

True

Question 14

This document provieds a detailed description of the product being offered. Federal law requires producers give this document to customers BEFORE beginning a sales presentation.

Answer 14

prospectus