Variable Life Insurance Policies
5 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What method allows variable life insurance policy owners to make withdrawals?

  • By taking out a temporary insurance policy
  • Through a fixed interest withdrawal method
  • By increasing the life cover sum assured
  • Through cancellation of units or fixed monetary amounts (correct)
  • Which option represents a possible withdrawal method for variable life insurance owners?

  • Cancellation of units for a fixed monetary amount (correct)
  • Increasing the life cover for further withdrawals
  • Reduction of the policy's investment component only
  • Withdrawal through an external loan
  • What does the cancellation of units in a variable life insurance policy involve?

  • It results in permanent loss of policy value
  • It allows for fixed monetary amount withdrawals only
  • It can lead to a reduction in the life cover sum assured (correct)
  • It provides access to the cash value without affecting benefits
  • How can variable life insurance policy owners withdraw funds without impacting their overall coverage?

    <p>By only cancelling investment units</p> Signup and view all the answers

    Which option does NOT accurately describe a withdrawal method available to variable life insurance policy owners?

    <p>Fixed monetary amounts can be accessed without cancellation of units</p> Signup and view all the answers

    Study Notes

    Variable Life Insurance Withdrawals

    • Policy owners can make withdrawals from their variable life insurance based on different options.
    • Withdrawals may be made in terms of a fixed monetary amount, which can be achieved by cancelling specific units of the policy.
    • Alternatively, policy owners can withdraw a specified number of units, impacting the total life coverage amount.
    • Another method allows for withdrawals strictly in monetary terms through a reduction of the life cover sum assured.
    • It's important for policyholders to understand how each option affects their overall insurance coverage and policy performance.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your understanding of variable life insurance policy withdrawals. This quiz includes questions related to the mechanics and options available for policy owners when making withdrawals. Whether it's understanding unit cancellations or monetary reductions, assess your knowledge here!

    More Like This

    Variable Life Insurance Exam Review
    13 questions
    Variable Life Insurance Policies Quiz
    37 questions
    Variable Life Policies Overview
    40 questions

    Variable Life Policies Overview

    PrestigiousGyrolite8312 avatar
    PrestigiousGyrolite8312
    Use Quizgecko on...
    Browser
    Browser