Question

1.

What is universal life​ insurance? How does it differ from term life and whole​ life?

Universal life​ insurance:     ​(Select the best answer​ below.)

		a. is classified as a cash dash value life insurance policyis classified as a cash-value life insurance policy.
		b. has a savings component like term life insurancehas a savings component like term life insurance.
		c. is a combination of whole insurance and a death benefitis a combination of whole insurance and a death benefit.

2.

What is variable life​ insurance? What are the advantages and disadvantages of variable life​ policies? How can individuals avoid the high fees of variable life​ insurance?

Variable life​ insurance:     ​(Select the best answer​ below.)

		a. has a benefit that varies throughout the term of the policy.
		b. is an option for a term policy.
		c. is related to universal life insuranceis related to universal life insurance.
		d. has variable premiums.

3.

What is whole life​ insurance? What benefit does it provide that term insurance does​ not?

Whole life​ insurance:     ​(Select the best answer​ below.)

		a. allows policyholders to terminate their policy but not withdraw any premiums they have paidallows policyholders to terminate their policy but not withdraw any premiums they have paid.
		b. has a fixed value for the policyholderhas a fixed value for the policyholder.
		c. is also called savings dash value life insuranceis also called savings-value life insurance.
		d. provides insurance as long as premiums are paidprovides insurance as long as premiums are paid.

4.

Describe the nonforfeiture and loan clasues of whole life insurance policies.

The    nonforfeiture ​clause:     ​(Select the best answer​ below.)

		a. allows you to receive a portion of the accumulated savings if the whole life policy is terminatedallows you to receive a portion of the accumulated savings if the whole life policy is terminated.
		b. allows you to receive the savings you accumulated if you terminate your whole life policyallows you to receive the savings you accumulated if you terminate your whole life policy.
		c. allows you to receive half of the savings you accumulated whenever you have a qualifying eventallows you to receive half of the savings you accumulated whenever you have a qualifying event.
		d. allows the policyholder to borrow at a lower rate than that offered by financial institutionsallows the policyholder to borrow at a lower rate than that offered by financial institutions.

Answer 1

Question 1:

Option A. is classified as a cash dash value life insurance policyis classified as a cash-value life insurance policy

Universal life insurance is a type of cash value life insurance

Question 2:

Option C. is related to universal life insurance

Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash-value account, which is invested in a number of sub-accounts available in the policy

Question 3:

Option D. provides insurance as long as premiums are paid

A whole life policy is a type of life insurance that provides guaranteed death benefits during the entire life of the policyholder.

Question 4:

Option A. allows you to receive a portion of the accumulated savings if the whole life policy is terminated

A nonforfeiture clause is an whole life policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment