All of the following statements about variable life insurance are true EXCEPT:

a. Variable life insurance combines life insurance with a mutual fund.

b. Variable life insurance provides a minimum guaranteed rate of return, but the actual return can be higher if investment experience is favorable.

c. Variable life insurance allows the policyowner to select where the cash value is invested.

d. Variable life insurance has fixed premium payments.

e. Variable life insurance policies include settlement options.

Expert Solution

A. Variable life insurance combines life insurance with a mutual fund. (TRUE) - Depends on the nature of Variable insurance investment can be in mutual funds of Index funds/sectorial funds etc.

B. Variable life insurance provides a minimum guaranteed rate of return, but the actual return can be higher if investment experience is favorable. ( NOT TRUE) All variable life insurance does not come with a minimum guaranteed return. Specifically, those insurance policy investments made on risky/volatile asset classes return can be negative also.

C. Variable life insurance allows the policy owner to select where the cash value is invested. (TRUE) Depends on risk profiling of client insurance agents guides the client on where the cash value should be invested.

D. Variable life insurance has fixed premium payments. (TRUE) The policyholder has to pay a minimum premium on a predecided period like yearly/quarterly/monthly. If initial cash payment is very large then they can skip premium. But actually future premiums are discounted on the present value of cash flow only.

E. Variable life insurance policies include settlement options. (TRUE) Yes, these policies are customized with different settlement options.

Ans : Option B

jeff jeffy answered 2 years ago

All of the following statements about life insurance are true, EXCEPT: Select one: a. Whole life...

All of the following statements about life insurance are true, EXCEPT: Select one: a. Whole life insurance is regarded as permanent insurance and is generally more expensive than term insurance. b. Beneficiaries who receive benefits under life insurance policies after the insured’s death must pay income tax on the death benefits they receive. c. Term life insurance provides temporary protection for a stated number of years, and is frequently renewable. d. The incontestable clause states that the insurer cannot contest...

5.) All of the following statements concerning variable life insurance are correct EXCEPT (a)If the variable...

5.) All of the following statements concerning variable life insurance are correct EXCEPT (a)If the variable universal life policy investment experience is weak, the death benefit amount may be reduced to zero. (b)Variable life has a fixed premium and fluctuating death benefit and cash values. (c)Variable life policies must be regulated by the Securities and Exchange Commission (SEC). (d)The owner of a variable universal life policy has the option to invest in a variety of investments. 7.) All of the...

All of the following statements about the characteristics of group insurance are true EXCEPT The actual...

All of the following statements about the characteristics of group insurance are true EXCEPT The actual experience of a group may be a factor in determining the premium that is charged. Individual evidence of insurability is usually required. Many persons are covered under a single contract. The cost of group insurance is generally lower than the cost of individual insurance.

All of the following statements about a loss sustained crime insurance form are true EXCEPT

All of the following statements about a loss sustained crime insurance form are true EXCEPTcoverage is for up to 1 year after the policy expireslosses sustained within the policy period are coveredlosses that occur after the policy expiration are coveredlosses that are discovered within a year of expiration are covered

All of the following statements concerning whole life insurance are correct EXCEPT If the whole life...

All of the following statements concerning whole life insurance are correct EXCEPT If the whole life insurance premiums are to be paid throughout the insured’s lifetime, the insurance is known as limited-payment; if the whole life insurance premiums are to be paid only during a specified period, the insurance is designed as ordinary life Whole life insurance offers permanent protection with cash values, and it can be either participating or nonparticipating The protection afforded by the whole life insurance contract...

All of the following statements are true except:

All of the following statements are true except: a. A portfolio may contain multiple programs and projects. b. A project manager has the discretion to make trade-offs in regard to which programs to pursue. c. A program manager has the discretion to make trade-offs in regard to which projects to pursue. d. Projects have a finite timeline, while programs may exist as long as the parent organization does. Which of the following is a financial analysis tool that an...

Multiple choice: All of the following statements about evolution are true except: A) It is a...

Multiple choice: All of the following statements about evolution are true except: A) It is a change in the frequency of particular alleles within a population over time. B) Every mutation occurring in an organism’s DNA leads to genetic changes that are beneficial and adaptive. C) When an animal selects a mate based on particular features or behaviors, the offspring that result will be better adapted than would those arising from a purely random mate choice. D) Darwin’s theory of...

All of the following statements concerning the methods of providing life insurance protection are correct EXCEPT...

All of the following statements concerning the methods of providing life insurance protection are correct EXCEPT a. An insurance company can use two approaches to provide life insurance protection; term insurance, which is temporary, or cash value insurance, which is permanent protection that builds up a reserve or savings component. b. Term insurance is a form of life insurance in which the death proceeds are payable in the event of the insured's death during a specified period and nothing is...

All of the following statements about the median are true, except: it may not have been...

All of the following statements about the median are true, except: it may not have been a score actually in the distribution it is not sensitive to outliers it is appropriate for all measurement scales approximately 50% of the scores will be above the median and 50% below it divides a distribution in half n a positively skewed distribution, the mean is ____________ the median. typically equal to always less than equal to half of always equal to typically greater...

All of the following statements about molecular recognition processes are true EXCEPT they can be carried...

All of the following statements about molecular recognition processes are true EXCEPT they can be carried out at lower temperatures than traditional methods do. they contribute greatly to polluting the environment than traditional methods do. they require smaller amounts of solvents than traditional methods do. they use less energy than traditional methods do.

Question