Question
A policy that combines protection against premature
death with a savings account that can be invested in stocks, bonds, and money market mutual funds at the policyholder’s discretion is called?Solution
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.
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