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?

A Variable Life Insurance Correct Answer Incorrect Answer
B Kidnap/Ransom Insurance Correct Answer Incorrect Answer
C Inland Marine Insurance Correct Answer Incorrect Answer
D Uninsured Motorist Coverage Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

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.

Practice Next
×
×