Universal Life Flashcards
1
Q
True or False: Universal life is associated with flexible coverage
A
True - Universal life = flexible
2
Q
True or False: Universal life has cash value
A
True - Universal life policies have cash value and insurance component
3
Q
True or False: If the cash value goes to $0, the policy lapses
A
True
4
Q
T or F: Cost of insurance goes up every year in Universal Life
A
True
5
Q
T or F: Universal life has 2 death benefits
A
True
6
Q
What are the 2 death benefits of Universal Life
A
a. face value only b. Both face value + cash value
7
Q
Amount you need to pay to avoid policy lapse
A
Target premium
