Question: Which Of The Following Is Not Characteristic Of Universal Life Insurance?

Which of the following is NOT a characteristic of a universal life policy? The cash value of a universal life policy is tied to current interest rates and can vary, but it has a guaranteed minimum rate. The correct answer is: Proof of insurability is required to increase the policy face amount.

Which of the following are characteristics of universal life insurance?

Beyond lifelong protection, there are a few additional features of universal life insurance:

  • You can withdraw money or borrow against the policy’s cash value.
  • Your cash value earns interest.
  • You have flexibility with premiums.
  • You can adjust the death benefit.

Which of the following is not a characteristics of a variable universal life policy?

Which of the following is not a characteristic of a variable universal policy? The variable universal life policy DOES have cash value that varies with the performance of the investment. The correct answer is: It has no cash value.

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Which of the following is not characteristics of whole life insurance?

All of the following is NOT a characteristics of whole life insurance: The cash value in a permanent life insurance policy is not a nonforfeiture benefit. Cash value may be used as a policy loan, without affecting the death benefit.

What is universal life insurance quizlet?

Universal life insurance. an extremely flexible life insurance policy. A policy owner can increase premiums, reduce premiums or cancel premiums. Same to the death benefit. unbundled.

Which of the following are characteristics of universal life insurance policies quizlet?

-The insurance protection, savings, and expense components of the policy are unbundled. -For most universal life policies, the insured’s premium payments are flexible. Three interest rates are stipulated in the policy. The cash values in variable universal life insurance are guaranteed, as are a minimum interest rate.

Which policy feature makes a universal life policy?

The policy feature that makes universal life different from whole life insurance policies is its flexible premium schedule. A Modified Endowment Contract (MEC) can be described as a life insurance contract that has accumulated cash values higher than the IRS allows.

What’s the difference between universal life and 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.

Which of the following is not true about variable?

Variable names cannot start with number. For example, 1test is an invalid variable name. The value stored by a variable cannot change. Variables are a name for a spot in the computer’s memory The value stored by a variable can be changed.

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What is group variable universal life?

What is Group Variable Universal Life (GVUL) Insurance? GVUL is a life insurance contract with an investment option that offers tax-deferred benefits, including a fixed account. * These options allow you the ability to access your funds if you need them to help manage expenses.

Which of the following is not a life insurance?

Answer: Indemnity contract is not applicable in life insurance contract. Among the given options option (c) Indemnity contract is the correct answer.

Is universal life a whole life policy?

Whole life and universal life insurance are both considered permanent policies. That means they’re designed to last your entire life and won’t expire after a certain period of time as long as required premiums are paid.

What are the main features of whole life insurance except?

All of the following are advantages of whole life insurance, EXCEPT: The premium-paying period may extend beyond the income-earning years. This life insurance policy provides death protection for the insured’s entire life, but premiums are not paid for the insured’s entire life.

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.

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