Utah Life Insurance Practice Test

Question: 1 / 400

What characteristic does variable universal life insurance combine from both policy types?

Fixed death benefits and guaranteed cash value

A guaranteed cash value and no investment risk

Variable investment options and universal life flexibility

Variable universal life insurance is a unique type of permanent life insurance that combines features from both universal life insurance and variable life insurance. Specifically, it offers the policyholder the flexibility in premium payments and death benefits typical of universal life insurance, while also allowing for investment options that can fluctuate in value akin to variable life insurance.

This combination means that policyholders can not only adjust their premium payments and death benefits based on their needs and circumstances but also choose to allocate a portion of their premiums into various investment options, which can lead to potentially higher cash value growth depending on market performance. Therefore, option C accurately captures this synergy, highlighting the variable investment options and the flexibility that are defining characteristics of variable universal life insurance.

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High premiums and limited adjustments

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