Which of the following are the features of a variable life insurance policy?
Variable universal life is a type of permanent life insurance policy. Its features 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 a guaranteed minimum death benefit, which is the policy face amount, but the policy cash value is not guaranteed since it is tied to the separate account.
Which of the following are features of a variable insurance plan?
Variable Life Insurance – Characteristics
- Premium. As with any life insurance policy, variable life insurance mandates the beneficiary to pay premiums into an account. …
- Death benefit. Like any other life insurance, variable life insurance provides a death benefit. …
- Policy loans. …
- Investment options.
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.
What are the benefits of variable life insurance?
Variable life insurance, also called variable appreciable life insurance, provides lifelong coverage as well as a cash value account. Variable life insurance policies have higher upside potential of earning cash than other permanent life insurance policies.
What is a 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 is variable life insurance quizlet?
What is Variable Life? –Permanent life insurance with investment flexibility. -Level premium. -Policyholder’s separate investment account for cash value (CV)
What are variable products in insurance?
Variable life insurance is a permanent life insurance product. This product contains separate accounts comprised of various instruments and investment funds. Variable policies are considered securities contracts because of investment risks.
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 differentiates variable life insurance from variable universal life?
The key difference between variable and universal life insurance is the way the cash value grows. While variable life insurance gives you investment options to grow your cash value, the cash value in a universal life insurance policy grows at a rate set by the insurer.
How is variable whole life different from variable universal life quizlet?
Whole life — Premium payments: Variable and whole life insurance premiums are generally paid in fixed amounts at fixed dates. Universal life insurance premium payments are flexible in timing and amount. Variable universal life has flexible premiums.
Which of these is an element of Variable Life policy?
Which of these is an element of a Variable Life policy? Variable Whole Life policies have a fixed, level premium. Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? The policyowner (investor) benefits upon the death of the insured.
What is the benefit of a Variable Life policy as compared to a universal life policy quizlet?
Terms in this set (5)
-Variable life insurance offers fixed premiums, a flexible death benefit and the ability to earn a variable rate of return. The difference in these structures can help a potential policyholder to choose the right type of policy.
What is the benefit of a variable life policy as compared to a universal life policy?
The variable death benefit is equal to the cash value at the time of death, plus the face value of the insurance. Unlike universal life insurance, this policy offers the freedom to invest in a preferred investment portfolio. The policyholder can be a conservative or aggressive investor.
Which of the following is a benefit of purchasing variable life insurance quizlet?
The premiums paid to purchase a variable life insurance policy are tax deductible. (Variable life insurance policies provide a guaranteed minimum death benefit. However, the death benefit may be increased based on the performance of the subaccount products into which the owner directs the excess premiums.
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.
What is a variable insurance trust?
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 is variable adjustable life insurance?
Adjustable life insurance is a hybrid of term life and whole life insurance that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period.
What are the cons to variable life insurance?
The main disadvantage to variable life insurance is that it presents greater risks to the policyholder – just like any other investment, performance can fluctuate depending on the markets.
How does a typical Variable Life policy grow?
Understanding Variable Life Insurance
Growth of the cash value account isn’t taxable as ordinary income. These accounts can be drawn upon in later years and when done properly—through loans using the account as collateral instead of direct withdrawals—funds may be received free of income taxation.