What is guaranteed in a Variable Whole Life policy?
Variable life insurance: Guarantees the death benefit won't fall below a specific dollar amount, regardless of investment performance. Variable universal life: Allows a policyholder to increase or decrease the death benefit, no matter how the cash value investment account is performing.
Which of the following is guaranteed under a variable life insurance policy?
Variable whole life policies have a guaranteed minimum death benefit. The cash value is tied to the separate account, which is not guaranteed. A variable life policy cannot be proposed in a sales scenario unless a prospectus precedes or accompanies the proposal, because it is considered a security.
What does a variable insurance policy guarantee?
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.
Is a variable variable whole life policy a guaranteed minimum?
Variable whole life policies have a guaranteed minimum death benefit. This death benefit may increase, based on the favorable investment activity in the separate account, but not decrease below the guaranteed minimum. The correct answer is: Is a guaranteed minimum, but may increase based on favorable investment activity in the separate account
Which type of life insurance policy has guaranteed features?
The correct answer is: Variable life. All of the following are guaranteed features in a variable life insurance policy, EXCEPT: The cash value is invested in the insurer's separate account, and is, therefore, not guaranteed.
How does variable life insurance work?
With a variable life insurance policy, you will be required to pay premiums into an account. The amount of the premium payments that go into the account may be less than you paid because fees were taken out of the premium payments. The money in the account gets invested in a menu of investment options —typically mutual funds— that you can select.