Characteristics of a variable life insurance policy include I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets II... Characteristics of a variable life insurance policy include I. Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets II. Its protection costs are generally met by implicit charges III. Its commission and company expenses are met by a variety of implicit charges with normally 6 months notice given by the life companies prior to any change IV. Its withdrawal value is normally the value of units allocated to the policy owner calculated at the bid price. A) I, II and III B) II, III and IV C) I, II and IV D) I, III and IV
Understand the Problem
The question presents statements regarding the characteristics of a variable life insurance policy and asks which combination of statements is correct. The approach involves analyzing each statement to determine if they accurately describe the features of such a policy.
Answer
C) I, II and IV
The final answer is C) I, II and IV
Answer for screen readers
The final answer is C) I, II and IV
More Information
Variable life insurance policies are linked to the investment performance of underlying assets. They typically include features where the withdrawal value is influenced by investment performance, protection costs are met through implicit charges, and the withdrawal value is calculated at the bid price.
Tips
A common mistake is confusing the terms associated with the charges related to protection costs versus commission and company expenses.
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