Which of the following determines the cash value of a variable life policy?
Which of the following determines the cash value of a variable life policy? The performance of the policy portfolio. The cash value of a variable life policy is not guaranteed and fluctuates with the performance of the portfolio in which the premiums have been invested by the insurer.
Which of the following is a key distinction between variable whole life and variable universal life?
The difference between variable life and variable universal life insurance is the death benefit options and cash value growth potential. A VUL account gives you the option to increase or decrease the death benefit, while variable life provides the option to increase the premium or cash value of the death benefit.
What are the 4 key elements of an insurance policy?
These elements are a definable risk, a fortuitous event, an insurable interest, risk shifting, and risk distribution.
What determines cash value of a variable life policy?
The unique feature of variable life insurance is that its cash component can be invested in asset options, mainly mutual funds. The value of your account will depend on: the premiums you pay, how your investments perform, and the associated fees and expenses.
What will change the cash value of a variable life policy?
The unique feature of variable life insurance is that its cash component can be invested in asset options, mainly mutual funds. The value of your account will depend on: the premiums you pay, how your investments perform, and the associated fees and expenses.
Contracts Unconscionability
How do you calculate cash value of a policy?
To calculate the cash surrender value of a life insurance policy, add up the total payments made to the insurance policy. Then, subtract the fees that will be changed by the insurance carrier for surrendering the policy.
Are the cash values of this variable life insurance policy guaranteed?
The insurance company doesn't guarantee any rate of return (in most cases) and doesn't offer protection for investment losses. Like any investment, the cash value component of a variable life insurance policy comes with risk.
How is variable whole life different from variable universal life quizlet?
Universal life insurance guarantees some minimum level of interest for the cash value. Whole life insurance guarantees cash value. Variable life insurance: Has level premiums —Does not guarantee a rate of return on the cash value — Variable life insurance does not guarantee a rate of return on the cash value.
What is a divisible contract?
Which of the following is a key distinction between variable whole life and variable universal life profucts?
The difference between variable life and variable universal life insurance is the death benefit options and cash value growth potential. A VUL account gives you the option to increase or decrease the death benefit, while variable life provides the option to increase the premium or cash value of the death benefit.
Which of the following is a key distinction between variable whole life and variable universal life quizlet?
Which of the following is a key distinction between variable whole life and variable universal life products? A Variable whole life allows policy loans from the cash value.
What is true about credit life insurance?
Credit life insurance usually covers any remaining debt that a borrower has on a large loan. In a typical policy, the borrower will pay a premium — often rolled into their monthly loan payment — that allows the lender to be paid in full if the borrower dies before paying off the loan.
Which of the following is true regarding the insurance amount in a credit life policy?
Which of the following is true regarding the insurance amount in a credit life policy? Creditor can only insure the debtor for the amount owed.
