In a regular premium, variable whole life insurance plan: I. Premium top-ups and holidays, subject to the life company’s administrative rules are usually allowed II. Life protectio... In a regular premium, variable whole life insurance plan: I. Premium top-ups and holidays, subject to the life company’s administrative rules are usually allowed II. Life protection is the main objective of the plan with investment as a nominal purpose III. Withdrawals after the payment of a few years premium are usually allowed IV. A single premium contribution is made to the policy which uses the premium to purchase units in variable life fund and to provide certain level of life cover. A) II, III and IV B) I, II and III C) I, II and IV D) I, III and IV
Understand the Problem
The question is asking to evaluate statements regarding a regular premium, variable whole life insurance plan and to identify which statements are true. It requires knowledge of insurance policies and their characteristics.
Answer
I, II, and III
The final answer is I, II, and III.
Answer for screen readers
The final answer is I, II, and III.
More Information
In a regular premium, variable whole life insurance plan, premium top-ups and holidays are allowed, and life protection is the main objective with investment as a nominal purpose. Withdrawals are typically allowed after a few years of premium payments. A single premium contribution is not a feature of this type of plan, making statement IV incorrect.
Tips
A common mistake is to assume that a single premium contribution is typical in all whole life plans. However, in regular premium plans, premiums are paid periodically, not as a lump sum.
Sources
- Life Insurance Reviewer - Variable Part 5 | Take the Quiz | QuizMaker - take.quiz-maker.com
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