Front

Variable life insurance policy owners may make withdrawals in terms of

Back

Number of units or fixed monetary amount through cancellation of units

Answer explanation

varible life- FUND VALUE

Front

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

Back

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

Answer explanation

LOANS- VUL HAS NO LOANS

Front

The investment returns under variable life insurance policy: 1. Are not guaranteed II. Are assured III. Are linked to the performance of the investment fund management by the life company IV. Fluctuate according to the rise and fall of market prices

Back

I, III and IV

Answer explanation

VUL- HAS NO GUARANTEED

Front

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

Back

Misrepresentation is a specific form of twisting.

Front

Which of the following statements about variable life policies are TRUE? I. Offer price is used to determine the numbers of units to be cancelled to the account. II. The margin between the bid and offer price is used to cover the management cost of the policy III. The policy value is calculated based on the bid price of units allocated into the policy

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. Shares can become worthless if company becomes insolvent

Back

II. Investors are exposed to market and specific risks; III. Shares can become worthless if company becomes insolvent.

Answer explanation

COMMON SHARES-PWEDE LUMAGPAS AT BUMABA

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

Front

Rank the following in terms of their liquidity, from the least liquid to the most liquid: I. Short term securities II. Property III. Cash IV. Equities

Back

Property, Equities, Short term securities, Cash

Answer explanation

PROPERTY-EQUITIES-SHORT TERM-CASH

Front

A unit trust is

Back

Established by a trust deed which enables trustees to hold the pool of money and assets in trust on behalf of the investor.