In: Finance
Haley would like to know the difference between variable life insurance and universal life insurance. Which of the following statements most accurately describes the difference?
a. Variable life insurance uses subcontracts that are invested
to generate a guaranteed rate of return.
b. Universal life insurance uses a fixed mortality charge, and
variable life insurance does not.
c. Variable life insurance has a death bene t that varies, and
universal life insurance provides only a fixed death benefit.
d. Universal life insurance provides a crediting rate based on the
insurance company’s general account subject to a minimum guarantee,
and variable life insurance uses subaccounts that can fluctuate
based on market returns.
D. Universal life insurance provides a crediting rate based on the insurance company's general account subject to minimum guarantee and a variable life insurance uses subaccounts that can fluctuate based on market returns.