Haley would like to know the difference between variable life insurance and universal life insurance. Which...

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.

Solutions

Expert Solution

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.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Explain which type of life insurance (Term, Universal, Variable Universal, or Whole Life) you would purchase...

Explain which type of life insurance (Term, Universal, Variable Universal, or Whole Life) you would purchase in the future. (just pick any i have no preference)

Describe the distinguishing features between term life, universal life, adjustable life and variable life insurance.

There are four primary different types of life insurance, term, whole life, universal life and variable...

There are four primary different types of life insurance, term, whole life, universal life and variable life. Identify the primary characteristics of each and why someone might choose each type.

You would like to know whether there is a difference between the rate of cooling of...

You would like to know whether there is a difference between the rate of cooling of freshly killed corpses versus those that were reheated (to determine if you could fool a coroner about time of death). You tested several rats for their cooling constant, both when the rat was freshly killed and after the same rat was reheated. Assuming the distribution ofn differences is normal, is there any difference in the cooling constants between freshly killed and reheated rats? Test...

When making the decision to select Whole Life, Universal Life, Term or Variable Life Insurance, you...

When making the decision to select Whole Life, Universal Life, Term or Variable Life Insurance, you must consider cost, risk and personal family circumstances. 1, Make a positive case and a negative case for each type of policy above and identify at what age you might consider each. If you feel you are too young to take out insurance at this time, or you have no responsibilities to anyone or you feel you have no worth........ I will assume that...

An instructor would like to know about the difference in test averages between the first and...

An instructor would like to know about the difference in test averages between the first and second exams of the school year. To that end, we sample 100 of each test and find Test 1 has sample average 85 and Test 2 has sample average 79. From past experience we know Test 1 grades have a standard deviation of 3 and Test 2 grades have a standard deviation for 4.If μ1 is the population mean for Test 1 and μ2...

What is the difference between Whole Life Insurance and Term life Insurance policies?

Moe would like to know how much life insurance he will need forthe future. Using...

Moe would like to know how much life insurance he will need for the future. Using "The Easy Method," calculate how much life insurance will he need if his current income is $90,000.

Discuss the difference between life insurance and non-life insurance companies with regard to the certainty of...

Discuss the difference between life insurance and non-life insurance companies with regard to the certainty of timing and amount of cash outflows (i.e., which company’s cash outflow is more predictable in terms of amount and timing?). Why is life insurance company more suitable to invest its capital in equity portfolio than non-life insurance company who is more suitable to invest its capital in fixed income securities?

1. What is the difference between term life insurance and whole life insurance? 2. What are...

1. What is the difference between term life insurance and whole life insurance? 2. What are non-forfeiture provisions? (Google: life insurance settlement options. http://www.investopedia.com/exam-guide/cfp/life-insurance/cfp6.asp (Links to an external site.)Links to an external site. ) 3. Name three settlement options. 4. What is the difference between a primary and a secondary beneficiary? 5. Name two ways to determine how much life insurance is appropriate for Petunia?

Subjects