Which one of the following statements about the flexibility features of variable life policies is FALSE? A) Policyholders can take loans against their variable life policies up to... Which one of the following statements about the flexibility features of variable life policies is FALSE? A) Policyholders can take loans against their variable life policies up to the entire withdrawal value of their policies B) Policyholders may request for a partial withdrawal of the policy and the withdrawal amount will be met by cashing the units at bid price C) Policyholders have the flexibility of switching from one fund to another provided it satisfies the company's switching criteria D) Policyholders have the flexibility of increasing or decreasing their premiums for regular premiums variable life policies.
Understand the Problem
The question is asking us to identify the false statement regarding the flexibility features of variable life insurance policies, which involves understanding different aspects of these policies.
Answer
Statement A is FALSE.
The false statement is: Policyholders can take loans against their variable life policies up to the entire withdrawal value of their policies.
Answer for screen readers
The false statement is: Policyholders can take loans against their variable life policies up to the entire withdrawal value of their policies.
More Information
In variable life policies, loans can be taken but typically not up to the entire withdrawal value as the policy usually requires maintaining a certain surrender value for maintaining the policy.
Sources
- 2014-ILP-MOCK-EXAM-ANSWER-KEY-1.doc - Course Hero - coursehero.com
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