13 Questions
In a variable life insurance policy, how can owners make withdrawals?
Number of units or fixed monetary amount through cancellation of units
Which of the following statements about flexibility features of variable life policies is false?
Policyholders can take loans against their variable life up to the entire withdrawal value of their policies
What is true about the investment returns under variable life insurance policy?
Are linked to the performance of the investment fund managed by the life insurance company
Which of the following is not a flexibility feature of variable life policies?
Policyholders cannot change the beneficiary of the policy
What is required for policyholders to switch from one fund to another in variable life policies?
Fulfilling company’s switching criteria
What happens when policyholders make withdrawals in terms of fixed monetary amount through reduction of the life cover sum assured?
The cash value of the policy decreases
Which of the following statements about the policy value of variable life policies is TRUE?
The policy value of variable life policies is determined by the offer price at the time of valuation
Which of the following statements is FALSE?
Misrepresentation is a specific form of twisting
Which of the following statements about variable life policies is TRUE?
Offer price is used to determine the number of units to be credited to the account
What is the most suitable investment instrument for an investor who is interested in protecting his principal and receiving a steady stream of income?
Fixed income securities
What are the disadvantages of investing in common shares?
Shares can become worthless if the company becomes insolvent
Which of the following statements about the difference between variable life policies and endowment policies are FALSE?
The premiums and benefits of endowment policies are described at the inception of the policy whereas variable life are flexible as they are account driven
Which of the following statements about twisting is FALSE?
Twisting is a facility allowing policyholders to switch to another variable life funds offered by the company
Prepare for the Online ACE exam Sub-team Jaymie with this mock exam focusing on variable life insurance policies. Test your knowledge on topics like withdrawals, fixed monetary amounts, and cancellations.
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