Variable Life Insurance Flashcard

Front

Variable life insurance policyowners may make withdrawals in terms of __________.

Back

Number of units or fixed monetary amount through cancellation of units.

Front

Which of the following statements about the flexibility features of variable life policies is FALSE?
Policyholders may request for a partial withdrawal of the policy and the withdrawal amount will be met by cashing the units at bid price.
Policyholder can take loans against their variable life policies up to the entire withdrawal value of their policies.
Policyholders have the flexibility of switching from one fund to another provided it satisfied the company’s switching criteria.
Policyholders have the flexibility of increasing or decreasing their premiums for regular premiums variable life policies.

Back

Policyholder can take loans against their variable life policies up to the entire withdrawal value of their policies.

Front

The investment returns under variable life insurance policy ________.

Back

I, III and IV

Front

Which of the following statements are TRUE? Options: I and II, I, II and III, I and III, II and III

Back

I and II

Front

Which of the following statements is FALSE?
Rebating is to offer a prospect a special inducement to purchase a policy
Twisting is a specific form of misrepresentation
Misrepresentation is a specific form of twisting
Switching is a facility allowing policyholders to switch to another variable life fund offered by the company.

Back

Misrepresentation is a specific form of twisting

Front

Which of the following statements about variable life policies are TRUE? Options: I, II and III; I and II; I and III; II and III

Back

II and III

Front

What is the most suitable investment instrument for an investor who is interested in protecting his principal and receiving a steady stream of income?

Back

Fixed income securities

Front

What are the DISADVANTAGES of investing in common shares? I. Dividends are paid not more than fixed rates II. Investors are exposed to market and specific risks III. Share can become worthless if company becomes insolvent

Back

I, II and III

Front

Which of the following statements about twisting is FALSE?
Twisting is a special form of misrepresentation
It refers to an agent inducing a policyholder to discontinue policy with another company without disclosing the disadvantage of doing so
It includes misleading or incomplete comparison of policies
It refers to an agent offering a prospect a special inducement to purchase a policy

Back

It refers to an agent offering a prospect a special inducement to purchase a policy

Front

What kind of policy would you recommend for Mr. Juan dela Cruz, who is currently earning P30,000/month, is 35 years old, has a reasonable amount of savings, and has a moderate level for risk tolerance?

Back

Variable life policies