Podcast
Questions and Answers
What is the purpose of the margin between the bid and offer price in a variable life policy?
What is the purpose of the margin between the bid and offer price in a variable life policy?
- To cover the management's cost of the policy (correct)
- To determine the number of units credited to the account
- To calculate the policy value based on the bid price
- To provide a steady stream of income to the policyholder
How is the policy value of a variable life policy calculated?
How is the policy value of a variable life policy calculated?
- As the cash value plus any accumulated dividends
- Using the bid price of units allocated into the policy (correct)
- By the number of units credited to the account
- Based on the offer price at the time of valuation
Which of the following is a disadvantage of investing in common shares?
Which of the following is a disadvantage of investing in common shares?
- Lack of protection for the principal investment
- Inability to receive a steady stream of income
- Exposure to volatility in the equity markets
- All of the above (correct)
What is the purpose of rebating in the context of insurance policies?
What is the purpose of rebating in the context of insurance policies?
Which of the following statements about variable life policies is TRUE?
Which of the following statements about variable life policies is TRUE?
Which of the following is the most suitable investment instrument for an investor interested in protecting their principal and receiving a steady stream of income?
Which of the following is the most suitable investment instrument for an investor interested in protecting their principal and receiving a steady stream of income?
What is a key characteristic of a flexible premium policy with returns that vary with the underlying value of investments?
What is a key characteristic of a flexible premium policy with returns that vary with the underlying value of investments?
Which of the following does NOT contribute to the specific risk of an investment?
Which of the following does NOT contribute to the specific risk of an investment?
Which of the following is NOT an advantage of investing in bonds?
Which of the following is NOT an advantage of investing in bonds?
Rank the following investment instruments in terms of risk, from least risky to most risky.
Rank the following investment instruments in terms of risk, from least risky to most risky.
According to the disclaimer, what is one restriction on sharing the questionnaire and answer key prepared for general information purposes?
According to the disclaimer, what is one restriction on sharing the questionnaire and answer key prepared for general information purposes?
Why is it important for variable life insurance policies to be tied to the underlying investment performance?
Why is it important for variable life insurance policies to be tied to the underlying investment performance?
In a risk-return graph, where do equity funds typically fall?
In a risk-return graph, where do equity funds typically fall?
Which investment option generally offers higher returns with lower risk?
Which investment option generally offers higher returns with lower risk?
Where do cash funds typically sit on a risk-return graph?
Where do cash funds typically sit on a risk-return graph?
Which type of fund is usually associated with the lowest risk?
Which type of fund is usually associated with the lowest risk?
What does a risk-return graph show about the relationship between risk and return?
What does a risk-return graph show about the relationship between risk and return?
Which type of fund is likely to have the highest risk in terms of investment?
Which type of fund is likely to have the highest risk in terms of investment?
