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REVIEWER 2022 > VUL REVIEWER > Flashcards

VUL REVIEWER Flashcards

1
Q
  1. Variable Life Insurance policy owners may make withdrawals in terms of ______________.

a. Number of units or fixed monetary amount through cancellation of units
b. Number of units of fixed monetary through reduction of the life cover sum assured
c. Fixed monetary amount only through reduction of the life cover sum assured
d. Number of units through cancellation of units

A

a. Number of units or fixed monetary amount through cancellation of units

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2
Q
  1. Which of the following statements about flexibility features of variable life policies is false?

a. Policyholders may request for a partial withdrawal of the policy and the withdrawal amount will be met by cashing the units at the bid price.
b. Policyholders can take loans against their variable life up to the entire withdrawal value of their policies
c. Policyholders have the flexibility of switching from one fund to another provided it satisfies the company’s switching criteria
d. Policyholders have the flexibility of increasing or decreasing their premiums for regular premiums variable life policies.

A

b. Policyholders can take loans against their variable life up to the entire withdrawal value of their policies

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3
Q
  1. The investment returns under variable life insurance policy ______________.

I. Are not guaranteed
II. Are assured
III. Are linked to the performance of the investment fund managed by the life insurance company
IV. Fluctuate according to the rise and fall of market prices.

a. I, II and III
b. I, II and IV
c. I, III and IV
d. II, III and IV

A

c. I, III and IV

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4
Q
  1. Which of the following statements is TRUE?

I. The policy value of variable life policies is determined by the offer price at the time of valuation
II. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of the surrender
III. The life company needs to maintain a separate account for variable life policies distinct from the general account

a. I & II
b. I, II & III
c. I & III
d. II & III

A

d. II & III

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5
Q
  1. Which of the following statements is FALSE?

a. Rebating is to offer a prospect a special inducement to purchase a policy
b. Twisting is a specific form of misrepresentation
c. Misrepresentation is a specific form of twisting
d. Switching is a facility allowing the policyholders to switch to another variable life funds offered by the company

A

c. Misrepresentation is a specific form of twisting

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6
Q
  1. Which of the following statements about variable life policies is TRUE?

I. Offer price is used to determine the number of units to be credited to the account
II. The margin between the bid and offer price is used to cover the managements cost of the policy
III. The policy value is calculated based on the bid price of units allocated into the policy

a. I, II & III
b. I & II
c. I & III
d. II & III

A

d. II & III

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7
Q
  1. What is the most suitable investment instrument for an investor who is interested in protecting his principal and receiving a steady stream of income?

a. Equities
b. Warrants
c. Variable life policies
d. Fixed income securities

A

d. Fixed income securities

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8
Q
  1. What are the disadvantages of investing in common shares?

I. Dividends are paid more than fixed rates
II. Investors are exposed to market and specific risks
III. Shares can become worthless if company becomes insolvent

a. I & II
b. I & III
c. II & III
d. I, II, III

A

c. II & III

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9
Q
  1. Which of the following statements about the difference between variable life policies and endowment policies are FALSE?

I. The policy values of variable life policies directly reflect the performance of the fund of the life company
II. The premiums and benefits of the endowment policies are described at the inception of the policy whereas variable life are flexible as the account driven
III. The benefits and risks of variable life and endowment policies directly accrue to the policyholders

a. I & II
b. I, II & III
c. I & III
d. II & III

A

c. I & III

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10
Q
  1. Which of the following statements about twisting is TRUE?

I. Twisting is a special form of misrepresentation
II. It refers to an agents including a policyholder to discontinue policy with another company without disclosing the disadvantage of doing so
III. It includes misleading or incomplete comparison of policies
IV. It refers to an agent offering a prospect of special inducement to purchase a policy.

a. I & IV
b. III & IV
c. II, III & IV
d. I, II & III

A

d. I, II & III

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11
Q
  1. Mr. Juan Dela Cruz is currently earning PHP 30,000.00 per month. He is 35 years old and he has a reasonable amount of savings. He has a moderate level of risk tolerance. What kind of policy would you recommend for him to buy?

a. Participating endowment
b. Variable life policies
c. Participating whole life
d. Annuities

A

b. Variable life policies

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12
Q
  1. What are the benefits available when investing in variable life funds?

I. The variable life funds offer policyholders an access to pooled or diversified portfolios
II. The variable life policyholders can vary his premium payments, take premium holidays, add single premium top-ups and change the level of the sum assured easily.
III. The variable life policyholder can have access to a pool of qualified and trained professional fund managers

a. I & II
b. I & III
c. I, II & III
d. II & III

A

c. I, II & III

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13
Q
  1. Rank the following in terms of their liquidity, from the least liquid to the most liquid:

I. Short term securities
II. Property
III. Cash
IV. Equities

a. IV, II, III, I
b. III, I, IV, II
c. II, I, IV, III
d. II, IV, I, III

A

d. II, IV, I, III

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14
Q
  1. A unit trust is __________________.

a. Established by a trust deed which enables a trustee to hold the pool of money and assets in trust in behalf of the investor
b. A close-end fund and does not have to dispose off if the large number investors sell their shares
c. One whereby the investor buys units in the trust itself and not share in the company
d. An organization registered under the Security and Exchange Commission (SEC) which usually invests in a wide range of equities and other investment.

A

a. Established by a trust deed which enables a trustee to hold the pool of money and assets in trust in behalf of the investor

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15
Q
  1. Under variable life insurance policies _____________________.

I. There is no guaranteed minimum sum assured for the purpose of declaring dividends
II. There is no guaranteed minimum sum assured as a level of life insurance protection
III. Each of the policy owner’s premium will be used to purchase units the number of which is dependent on the selling price of each unit
IV. Purchase of units can only be made from the variable life fund itself, which will then create new units and add investment monies to the value of the fund

a. I & IV
b. II & IV
c. III & IV
d. II & III

A

c. III & IV

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16
Q
  1. The benefits of investing in variable life funds include __________________.

I. Policy owners have access to pooled or diversified portfolios of investment
II. Policy owners can easily change the level of the premium payments as the product design of variable life policies have clear structures which cater separately for investment and insurance protection
III. Policy owners can gain access to variable life funds managed by professional investment managers with proven track records
IV. Policy owners can buy a variable life insurance policy only with a high initial investment

a. I, II & IV
b. I, III & IV
c. I, II & III
d. II, III & IV

A

c. I, II & III

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17
Q
  1. Which of the following BEST describes the policy benefits of variable life policies?

a. The policy benefits are payable only on death or disability
b. The policy benefits will depend on the long-term performance of the life company.
c. The policy benefits are directly linked to the investment performance of the underlying assets
d. The policy benefits are guaranteed

A

c. The policy benefits are directly linked to the investment performance of the underlying assets

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18
Q
  1. Why is it important that the customer must understand the sales proposal in full?

a. Because the insurer does not guarantee any return
b. Because the impact of changes in investment condition on variable life policy is borne solely by the customer
c. Because the agent may give the wrong recommendations
d. Because the policyholder expects higher returns

A

b. Because the impact of changes in investment condition on variable life policy is borne solely by the customer

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19
Q
  1. Which of the following statements about rebating are TRUE?

I. Rebating is prohibited under the Insurance Code
II. Rebating deals with offering the prospect a special inducement to purchase a policy
III. Rebating will enhance the sales performance and uphold the prestige of an agent

a. I & II
b. I & III
c. II & III

A

a. I & II

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20
Q
  1. Which one of the following statements is FALSE?

a. Variable life insurance policies offer investors policies with values and indirectly linked to the investment performance of the life company
b. Life company will carry out a valuation of its funds yearly and any surplus may be allocated to participating policyholder as cash dividends
c. Both whole life and endowment policies can be used as an investment media with benefits that become payable at a future date
d. The investment element of Variable Life Policies varies according to underlying assets of the portfolio

A

a. Variable life insurance policies offer investors policies with values and indirectly linked to the investment performance of the life company

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21
Q
  1. Which of the following statements about option to top-up under variable life insurance is TRUE?

I. Policy owners may buy additional units of the variable life fund and these units will be allocated to new variable life insurance policies
II. Further premiums at time of the top-up will be used in full, after deducting charges for top-ups, to purchase additional units of the variable life funds
III. Top-up policy, the policy owner pays further single premium at the time of the top-up
IV. Policy owners are normally allowed to top-up their policies at any time, subject to a minimum amount

a. II, III & IV
b. I, II & III
c. I, II & IV
d. I, III & IV

A

a. II, III & IV

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22
Q
  1. The characteristic of a variable life insurance include __________________.

I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets.
II. Its protection costs are generally met by explicit charges
III. Its commission and company expenses are met by a variety of implicit charges with normally 6 months notice given by the life companies prior to any change
IV. Its withdrawal value is normally the value of units allocated to the policy owner calculated at the bid price

a. I, II & III
b. II, III & IV
c. I, II & IV
d. I, III & IV

A

c. I, II & IV

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23
Q
  1. Which of the following statements about single premium variable life policies are TRUE?

I. There is no fixed term in a single premium variable life policy and therefore, they are technically whole life insurance
II. Top-ups or single premium injection are allowed in these plans
III. Policyholders have the flexibility of varying the level cover

a. I, II & III
b. II & III
c. I & II
d. I & III

A

b. II & III

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24
Q
  1. Investing in bonds offer the following advantages except

a. Offering protection to the principal and guaranteed steady stream of income
b. Being a place of temporary refuge when the investor foresees that the market outlook is uncertain.
c. Allowing the investor, a chance for capital preservation
d. Enabling the investor an opportunity for capital appreciation

A

d. Enabling the investor an opportunity for capital appreciation

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25
Q
  1. Which of the following statements about variable life policies are TRUE?

I. The cash withdrawal value is not guaranteed
II. The volatility of the returns depends on the investment strategy of the fund
III. The variable life policyholder has direct control over the investment decisions of the variable life fund

a. I, II & III
b. I & II
c. I & III
d. II & III

A

b. I & II

26
Q
  1. Single premium variable life insurance policy must be issued:

a. With a minimum death benefit
b. With a maximum withdrawal value
c. Without death benefit
d. Without withdrawal value

A

a. With a minimum death benefit

27
Q
  1. Which of the following statements about characteristics of variable life policies are TRUE?

I. Variable policies generally have a larger exposure to equity investment than with participating and other traditional policies
II. The protection costs are generally met by implicit charges, which vary with age and level of cover
III. The commissions and company expenses are met by a variety of explicit charges, some of which are variable

a. I, II & III
b. I & II
c. II & III
d. I & III

A

b. I & II

28
Q
  1. Which of the following statements about benefits in variable life fund is FALSE?

a. The fund provides a highly diversified portfolio, thus, lowering the risk of investment
b. The fund ensures definite high yield for an investor since it is managed by professionals who are well versed in the management of risk of investment portfolios
c. The fund relieves the investor from the hassle of administering his/her investment
d. The fund enables small investors to participate in a pool of diversified portfolio in which he/she, with a low investment capital, is likely to have acceded to

A

b. The fund ensures definite high yield for an investor since it is managed by professionals who are well versed in the management of risk of investment portfolios

29
Q
  1. The flexibility benefit of investing in variable life funds include ________________.

I. Policy owners can easily change the level of sum assured and switch their investment between funds
II. Policy owners can easily take premium holidays and add single premium to Top-ups
III. Variable life insurance policies offer the potential for higher returns.
IV. Traditional participating policies aim to produce a steady return by smoothing out market fluctuation

a. All of the above
b. I, II & III
c. I, II & IV
d. I, III & IV

A

b. I, II & III

30
Q
  1. The fundamental differences between traditional participating life insurance policies and variable life insurance policies include _________________.

I. Variable life insurance policies are less likely to offer more choices in terms of the type of investment funds
II. The investment elements of variable life insurance policies is made known to the policy owner at the outset and is invested in a separately identifiable fund which is made up of units of investment
III. Variable life insurance policy offer the potential for higher returns
IV. Traditional participating policies aim to produce a steady return by smoothing out market fluctuation

a. I, III & IV
b. II, III & IV
c. I, II & III
d. I, II & IV

A

b. II, III & IV

31
Q
  1. The switching facility under variable life insurance policies is a very useful ______________.

a. For the purpose of profit planning by the life policies
b. For the purpose of assets planning by the trustee
c. For the purpose of sales planning by the fund managers
d. For the purpose of financial planning by the policy owners

A

d. For the purpose of financial planning by the policy owners

32
Q
  1. The following statement about surrender value under traditional participating life insurance products are TRUE?

a. Cash value is paid when yearly renewable term insurance policy is surrendered
b. When a participating insurance policy is surrendered, the surrender value is calculated by multiplying the bid price with the number of units
c. The amount surrender value is usually higher than the amount under non-participating policies and it varies with the age of the assured, being lower at older ages
d. In the case of participating policies, the net cash surrender value includes the surrender value of the paid-up addition up to the date of surrender

A

c. The amount surrender value is usually higher than the amount under non-participating policies and it varies with the age of the assured, being lower at older ages

33
Q
  1. Which one of the following statements about risk of investing in variable life funds is TRUE?

a. Policy owners who are risk averse should buy life insurance policies with high equity investment
b. Investment in variable life funds which are fully invested un units of equity bonds are not suitable for policy owners who can tolerate the risks of short term fluctuation in their cash value
c. Policy owners who invest in variable life funds with high equity investment face higher risk but can expect to achieve higher return than the traditional life insurance product over the long term
d. Policy owners who are risk averse should not purchase life insurance policies with high protection and guaranteed cash and maturity values

A

c. Policy owners who invest in variable life funds with high equity investment face higher risk but can expect to achieve higher return than the traditional life insurance product over the long term

34
Q
  1. What should be the withdrawal values after a year?
Offer Price			=		PHP 16.00
Bid-Offer Spread		=		4.5%
Number of units bought=		25,000
Policy Fee			=		1,800
Admin and Mortality Charge	=	8,750
Top-up Fee			=		700
Admin for Top-up		=		2,000

Sum assured is 190% of single premium or the value of units, whichever is higher.

ASSUMPTIONS:

  1. Charges and fees are deducted after the single premium has been invested into the account.
  2. The growth rate of the unit price and bid-offer spread is maintained at 8% and 4.5% respectively.

a. Php 432,000.00
b. Php 420,069.20
c. Php 401,107.58
d. Php 412,500.00

A

c. Php 401,107.58

35
Q
  1. The protection cost under a variable life insurance policy ______________________.

I. Are met by flat initial charges for regular premium plans
II. Are generally covered by cancellation of units in the fund
III. Are generally met by explicit charges stipulated openly in the policy terms
IV. Vary with age of policy owner and level of cover

a. I, II & III
b. I, II & IV
c. I, III & IV
d. II, III & IV

A

d. II, III & IV

36
Q
  1. Which of the following statements about diversification in portfolio management is FALSE?

a. A diversified portfolio provides greater security to an investor having to sacrifice return for the portfolio
b. Diversification can completely eliminate the risk of investing in stocks in a portfolio
c. Diversification can involve purchasing different types of stocks and investing stocks in different countries
d. Diversification helps to spread the portfolio risk by investing in different categories of investment in a portfolio

A

b. Diversification can completely eliminate the risk of investing in stocks in a portfolio

37
Q
  1. What are the advantages of investing in preferred shares?

I. It gives shareholders the right to a fixed dividend
II. Has the priority over company assets during a dissolution
III. They enjoy benefit of capital appreciation

a. I, II & III
b. I & II
c. I & III
d. II & III

A

a. I, II & III

38
Q
  1. With traditional participating life insurance products, the allocations to policy owners in the form of dividends ____________________.

I. Are not directly linked to the company’s investment performance
II. Have already been smoothened by the life company
III. Do not have the highs and lows of investment return as in good investments years of life company
IV. Are not fixed at the inception of the policy, but are greatly dependent on the investment performance of the company

a. I, II & III
b. I, II & IV
c. I, III & IV
d. II, III & IV

A

d. II, III & IV

39
Q
  1. The objective of satisfying customers need profitably can be achieved by an agent through

I. The giving of freebies to the customers
II. Extensive investment training by the company
III. The use of sales plan, where sales goals, strategies, and objectives are coordinated with the market analysis, segmentation and training
IV. The giving of monetary assistance and discount to the customers

a. I & III
b. II & III
c. II & IV
d. II, III & IV

A

b. II & III

40
Q
  1. Which of the statements is true about CASH?

a. It has high yield potential
b. Amount invested in cash depends on size of the cash flow requirement
c. Investment in cash increase when there is a bull run in the stock market
d. Investment in cash decrease when interest rates rise

A

b. Amount invested in cash depends on size of the cash flow requirement

41
Q
  1. Under a regular premium, variable whole life plan ____________________.

I. Premium top-ups and holidays, subject to the company’s administrative rules are usually allowed
II. Life protection is the main objective of the plan with investment as the nominal purpose
III. Withdrawals after the payment of a few years premium are usually allowed
IV. A single premium contribution is made to the policy which uses the premium to purchase units in a variable life fund to provide a certain level of life cover

a. II, III & IV
b. I, III & IV
c. I, II & IV
d. I, II & III

A
42
Q
  1. Which of the following statements about investment objectives is FALSE?

a. People invest money if fixed deposits to produce high and guaranteed returns
b. People invest money to enhance a comfortable standard of living
c. People invest money to provide funds for higher education for their children
d. Investment in commodities has no regular income

A

a. People invest money if fixed deposits to produce high and guaranteed returns

43
Q
  1. Which of the following is/are the main characteristic (s) of variable life policies?

I. The policies can be used for investment, as a source of regular savings and protection
II. The withdrawal values and protection benefits are determined by the investment
III. The net cash values of the policies are the gross cash values shown in the policy that includes dividends up to the date of surrender less and indebtedness including interest

a. II
b. I
c. I, II & III
d. I & II

A

d. I & II

44
Q
  1. Risk can be classified into two particular categories in relation to investment. They include ____________________.

I. The risk of not losing some or all of the person’s initial investment
II. The risk of rate of return on the investment not matching up to the individual’s expectation
III. The risk of rate of return on the investment matching up to the individual’s expectation
IV. The risk of losing some or all of a person’s initial investment

a. I & III
b. I & II
c. III & IV
d. II & IV

A

d. II & IV

45
Q
  1. The duties of the trustee of unit trust do not include

a. Managing the portfolio of investment and administering the buying and selling of shares in the unit trust itself
b. Ensuring that the fund manager adhere to the provision of the trust deeds
c. Acting generally to protect the unit-holders
d. Holding the pool of money and assets in trust in behalf of the investors

A

a. Managing the portfolio of investment and administering the buying and selling of shares in the unit trust itself

46
Q
  1. Policy fee payable by variable life insurance policy owner is to cover __________________.

a. The handling charges by professional investment managers
b. The price of each unit bought under the variable life insurance policy
c. The mortality costs of the variable life insurance policy
d. The administrative expenses of setting up the variable life insurance policy

A

d. The administrative expenses of setting up the variable life insurance policy

47
Q
  1. The selling price under a variable life insurance policy is

a. The price at which units under the policy are bought back by the life insurance company
b. The price at which units under the policy are offered for sale by the life company
c. Also known as the bid price
d. A fixed amount throughout the life of the policy

A

b. The price at which units under the policy are offered for sale by the life company

48
Q
  1. Diversification in investment involves __________________________.

a. Putting all the funds under management into one category of investment
b. Spreading the risk of investment by not putting the fund into several categories of investment
c. Reducing the risks of investments by putting one fund under management into several categories of investment
d. Reducing the risks of investment by putting all one’s eggs in one basket

A

c. Reducing the risks of investments by putting one fund under management into several categories of investment

49
Q
  1. Variable life funds can be invested in any financial instruments including cash funds, bond funds, equity funds, property funds, specialized funds, and diversified funds. Equity funds __________:

a. Invest in shares of stocks and the magnitude of the change in unit prices will only depend on the quantity of the equities held
b. Invest in shares of stocks and during market recession, such as assets are usually the last to depreciate
c. Invest in shares of stocks which are inherently of lower risk in nature and the prices of stocks are stable
d. Invest in shares of stocks and investors who buy such assets usually aim for capital appreciation.

A

d. Invest in shares of stocks and investors who buy such assets usually aim for capital appreciation.

50
Q
  1. Which of the following statements describe the difference between variable life products and participating products?

I. Variable life products allow policyholders to vary the premium payments unlike participating products
II. Variable life products can take the form of whole life or endowment policies with participating products
III. Variable life products allow policyholders to pay future single premiums from time to time to add more units to his account unlike participating products

a. I, II & III
b. I
c. I & III
d. II & III

A

d. II & III

51
Q
  1. Assuming no movement in the prices and charges / fees are deducted after the single premium has been invested into the account, how much will the policyholder lose if he surrender the policy now?
Bid price			=	Ps. 13.00
Bid-offer spread	=	4%
Single premium	=	Ps. 450,000
Policy fee		=	Ps. 1,800
Admin and Mortality charge	=	3%
Sum assured is 200% of single premium or the value of the units, whichever is higher

a. Ps. 43,400.90
b. Ps. 33,246.78
c. Ps. 22,500.00
d. Ps. 15,299.96

A

b. Ps. 33,246.78

52
Q
  1. Which of the following statements BEST describes “Variable Life” policies?

a. It is fixed premium policy with returns that will not vary with the underlying value of investments.
b. It is a fixed premium policy with returns that will vary with the underlying value of investment
c. It is a flexible premium policy with returns that will not vary with the underlying value of investments
d. It is a flexible premium policy with returns that will vary with the underlying value of investments

A

d. It is a flexible premium policy with returns that will vary with the underlying value of investments

53
Q
  1. Which of the following factors contribute to the specific risk of an investment:

I. Rate of corporate taxes
II. Fraud by senior management
III. Financial leverage of the company

a. I & II
b. II & III
c. I & III
d. I, II & III

A

b. II & III

54
Q
  1. Investing in bonds offers the following advantages EXCEPT

a. It offers protection to the principal and guaranteed steady stream of income
b. It is a place of temporary refuge when the investor foresees that the market outlook is uncertain
c. It allows the investor a chance for capital preservation
d. It enables the investor an opportunity for capital appreciation

A

d. It enables the investor an opportunity for capital appreciation

55
Q
  1. Rank the following investment instruments in terms of their level of risks, from the least risky to the most risky

I. Cash and deposit
II. Derivatives
III. A well-diversified investment portfolio of a company
IV. Stock options

a. I, IV, III & II
b. I, III, IV & II
c. I, IV, II & III
d. I, II, III & IV

A

a. I, IV, III & II

56
Q
  1. In risk-return profile of cash funds, bond funds, balanced funds, managed funds and equity funds, a risk-return graph will show that __________________.

I. Higher return normally comes with lower risk
II. Higher return normally comes with higher risk
III. At the top end of the graph are the equity funds
IV. The relatively risk-less cash funds sit at the bottom end of the graph

a. I, II & III
b. II, III & IV
c. I, II & IV
d. I, III & IV

A

b. II, III & IV

57
Q
  1. Which of the following statements are TRUE?

I. The policy value of variable life policies is determined by the price at the time of valuation
II. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of surrender
III. The life company needs to maintain a separate account for variable life policies distinct from the general account

a. I & II
b. I, II & III
c. I & III
d. II & III

A

d. II & III

58
Q
  1. Which of the following information is NOT required to be disclosed to policyholders of variable life policies?

a. The net withdrawal value as of the statement date
b. The premiums received and charge levied during the period
c. The basis and frequency for valuing the assets
d. Number and value of units held at the beginning of the period, bought and sold during the period, and held at the end of the period.

A

a. The net withdrawal value as of the statement date

59
Q
  1. Which of the following statements about surrender value under traditional participating life insurance product is TRUE?

a. Cash value is paid when a yearly renewable term insurance policy is surrendered.
b. When a participating insurance policy is surrendered, the surrender value is calculated by multiplying the bid price with number of units.
c. The amount of surrender value is usually higher than the amount under non-participating policies and it varies with the age of the assured, being lower at older ages.
d. In the case of participating policies, the net cash surrender value includes the surrender value of the paid-up addition up to the date of surrender.

A

c. The amount of surrender value is usually higher than the amount under non-participating policies and it varies with the age of the assured, being lower at older ages.

60
Q
  1. Which of the following statements is FALSE?

a. The policy value of variable life policies is determined by the offer price at the time of valuation
b. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of the surrender
c. The life company needs to maintain a separate account for variable life policies distinct from the general account

A

a. The policy value of variable life policies is determined by the offer price at the time of valuation

61
Q
  1. An investor in variable life funds gets to enjoy these benefits. Choose all that apply.

I. Policy owners have access to pooled or diversified portfolios of investment
II. Policy owners can easily change the level of the premium payments as the product design of variable life policies have clear structures which cater separately for investment and insurance protection
III. Policy owners can gain access to variable life funds managed by professional investment managers with proven track records
IV. Policy owners can buy a variable life insurance policy only with a high initial investment

a. I, II & IV
b. I, III & IV
c. I, II & III
d. II, III & IV

A

c. I, II & III

62
Q
  1. The flexibility benefit of investing in variable life funds include ________________.

I. Policy owners can easily change the level of sum assured and switch their investment between funds
II. Policy owners can easily take premium holidays and add single premium to Top-ups
III. Variable life insurance products have a single product design with a clear structure which cater separately for investment and insurance protection.
IV. Policy owners can easily change the level of their premium payment.

a. All of the above
b. I, II & III
c. I, II & IV
d. I, III & IV

A

c. I, II & IV

REVIEWER 2022 (7 decks)

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