Variable Life Insurance Mock Exam (Set D)

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Questions and Answers

Variable life insurance policy owners may make withdrawals in terms of ___________.

Number of units or fixed monetary amount through cancellation of units
Number of units through cancellation of units (correct)
Number of units of fixed monetary through reduction of the life cover sum assured
Fixed monetary amount only through reduction of the life cover sum assured

Which of the following statements about flexibility features of variable life policies is false?

Policyholders may request for a partial withdrawal of the policy and the withdrawal amount will be met by cashing the units at the bid price.
Policyholders can choose to increase or decrease the sum assured during the policy term
Policyholders have the option to make unlimited free switches between the investment funds available under the policy (correct)
Policyholders can take loans against their variable life up to the entire withdrawal value of their policies

Flashcards

Variable life insurance withdrawals

Policyholders can withdraw funds by canceling a specific number of units, reflecting the current market value of those units.

Flexibility in variable life policies

Policyholders have limited free switches between investment funds, typically with a set number of free switches per year.

Study Notes

Variable life insurance policy owners may make withdrawals in terms of ___________. Which of the following statements about flexibility features of variable life policies is false?