Quick Answer: Which Of The Following Is A Characteristic Of A Universal Life Insurance Policy?

All of the following are characteristics of universal life insurance, EXCEPT: -It combines life insurance protection with an investment or a savings aspect. -For most universal life policies, the insured’s premium payments are flexible. Three interest rates are stipulated in the policy.

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.

What is true regarding universal life insurance?

Universal Life (UL) policies are actually just a variation of whole life policies. They have minimum guaranteed cash values and rates of return and policy owners may take loans by using the cash value as collateral.

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Which of the following is characteristic of term life insurance quizlet?

All of the following are characteristics of term insurance, EXCEPT: Term policies do not accrue cash value. They only provide death protection. Premiums increase as the policy is renewed, and the death benefit is only paid out if the insured dies during the policy term.

Which of the following is a characteristic of a universal life insurance policy quizlet?

All of the following are characteristics of universal life insurance, EXCEPT: -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 of the following is a true characteristic of a variable universal life 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. These are all characteristics of variable life insurance. Universal life and variable universal life insurance have flexible premiums.

What are two components of universal policy?

A universal policy has two components: an insurance component and a cash account. The insurance component (or the death protection) of a universal life policy is always annual renewable term insurance.

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.

What is the benefit of universal life insurance?

Universal life insurance offers lifelong coverage, provides flexibility when it comes to paying premiums and choices for how the policy’s cash value is invested. A standard universal life insurance policy’s cash value grows according to the performance of the insurer’s portfolio and can be used to pay premiums.

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What is a characteristic of term life insurance?

Term life insurance is pure insurance protection that pays a predetermined sum if the insured dies during a specified period of time. 2 On the death of the insured person, term insurance pays the face value of the policy to the named beneficiary. All premiums paid are used to cover the cost of insurance protection.

What are the advantages of term life insurance quizlet?

it provides a current and guaranteed mortality cost, provides a current and guaranteed interest rate, provides either a level or increasing death benefit. a beneficiary may receive more than the policy’s initial face amount.

What is renewable about renewable term insurance quizlet?

Renewable term policies are called “renewable” because the insured is able to renew the policy if he wishes to do so, without evidence of insurability. An annual renewable term policy may be renewed each year, up to a specified age.

How is a variable universal life insurance policy different from a universal life insurance policy?

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 a true characteristic of permanent protection whole life?

Which of the following is not a true characteristic of permanent protection Whole Life? Flexible premiums are not a characteristic of a Whole Life Insurance Policy. A decreasing term policy has a death benefit that reduces over a defined number of years, but the premium remains the same in all years.

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What is the waiver of premium called on a universal life insurance policy quizlet?

Waiver of Cost of Insurance – Waiver of Cost of Insurance is a rider that waives the deduction of the monthly cost of insurance and expense charges associated with a Universal Life type policy while the insured is totally disabled, usually after 6 months of continuous disability.

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