Variable universal life is a type of permanent life insurance policy with features that include cash value, investment variety, flexible premiums and a flexible death benefit.

Which of the following are the features of a variable life insurance policy quizlet?

Variable life policies have fixed, level premiums. Variable life policies guarantee a minimum death benefit, which is why premiums are fixed and level.

What are the features of variable insurance plan?

Variable life insurance is a type of permanent life insurance that has several features in common with whole life insurance, and a few major differences:

• Permanent coverage.
• Pays a death benefit.
• Guaranteed death benefit.
• Fixed premiums.
• More investment options.
• More risk, more growth potential.

What is variable life insurance policy?

A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death.

What are the elements of a variable life policy?

How does variable life insurance work? There are three elements to variable life insurance, including a death benefit, cash value and premium. The premium is what you pay each month, some of which goes toward the cost of the insurance. The rest of the premium goes toward the investment accounts (sub-accounts).

What is variable life insurance quizlet?

-Variable life insurance offers fixed premiums, a flexible death benefit and the ability to earn a variable rate of return. -variable life combines the protection and savings functions of traditional life insurance with the growth potential of mutual fund investments.

Which of the following is a feature of a variable annuity?

A typical variable annuity offers three basic features not commonly found in mutual funds: tax-deferred treatment of earnings; a death benefit; and. annuity payout options that can provide guaranteed income for life.

What are variable policies?

A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death.

What are variable products in insurance?

What Is Variable Life Insurance? Variable life insurance is a permanent life insurance product with separate accounts comprised of various instruments and investment funds, such as stocks, bonds, equity funds, money market funds, and bond funds.

What type of insurance is variable life?

Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash-value account, which is invested in a number of sub-accounts available in the policy. A sub-account acts similar to a mutual fund, except it’s only available within a variable life insurance policy.

What are variable insurance trusts?

MFS Variable Insurance Trust is an open-end investment management company offering insurance company separate accounts a selection of investment vehicles for their variable products, such as variable annuities and variable life insurance.

What differentiates variable life insurance from variable universal life?

Variable life insurance is a type of permanent life insurance with a cash value and with investment options that work like a mutual fund. Universal life insurance is a type of permanent life insurance with a cash value that grows based on the current interest rate set by the insurer.

What is variable life insurance What are the advantages and disadvantages of variable life policies How can individuals avoid the high fees of variable life insurance?

An advantage of variable life policies is​ that: policyholders have flexibility in making their own investments. Individuals avoid the high fees of variable life insurance​ by: purchasing​ lower-cost term insurance and investing the cost difference.

Which of the following entities regulate variable life policies?

Variable life insurance is regulated by both the state and federal government, as well as the Insurance Department, and the SEC.

What type of premium is variable whole life insurance based on?

A variable life insurance policy is based on level-fixed premium. as the cash value component increases, premiums decrease.