Life Insurance Reviewer - Variable Part 5
Life Insurance Variable Quiz
Test your knowledge on variable life insurance with our comprehensive quiz. This quiz will challenge your understanding of the principles, benefits, and characteristics of variable life policies.
- 10 engaging multiple-choice questions
- Evaluate your understanding of life insurance concepts
- Enhance your financial literacy
In a regular premium variable whole life insurance plan _______________.
I. Premium top-ups and holidays, subject to the life company’s administrative rules are usually allowed
II. Life protection is the main objective of the plan with investment as a nominal purpose
III. Withdrawals after the payment of a few years premium are usually allowed
IV. A single premium contribution is made to the policy which uses the premium to purchase units in variable life fund and to provide certain level of life cover
II, III and IV
I, III and IV
I, II and IV
I, II and III
Which of the following are main characteristic(s) of variable life policies?
I. The policies can be used for investment, as a source of regular savings and protection
II. The withdrawal values and protection benefits are determined by the investment performance of the underlying assets
III. The net cash values of the policies are the gross cash values shown in the policy that includes dividends up to the date of surrender, less any indebtedness including interest
II
I
I, II and III
I and II
Which of the following statements is true about CASH?
It has high yield potential
Amount invested in cash depends on the size of the cash flow requirement
Investment in cash increases when there is a bull run in the stock market
Investment in cash decreases when interest rates rise
Which of the following statements about investment objectives is FALSE?
People invest money in fixed deposits to produce high and guaranteed returns
People invest money to enhance a comfortable standard living
People invest money to provide funds for higher education for their children
Investment in commodities has no regular income
Variable life funds can be invested in any financial instruments including cash funds, bond funds, equity funds, property funds, specialized funds and diversified funds. Equity funds means___________
Invest in shares of stocks and the magnitude of the change in unit prices will only depend on the quantity of the equities held
Invest in shares of stocks and during market recession, such assets are usually the last to depreciate
Invest in share of stocks which are inherently of lower risk in nature and the prices of stocks are stable
Invest in shares of stocks and investor who buys such assets usually aims for capital appreciation
In risk–return profile of bond funds, cash funds, managed funds, balanced funds and equity funds, a risk-return graph will show that __________________
I. Higher return normally comes with lower risk
II. Higher return normally comes with higher risk
III. At the top end of the graph are the equity funds
IV. The relatively risk-less cash funds sit at the bottom end of the graph
I, II and III
II, III and IV
I, II and IV
I, III and IV
The duties of the trustees of unit trust do not include
Managing the portfolio of investment and administering the buying and selling of shares in the unit trust itself
Ensuring that the fund manager adhere to the provision of the trusts deeds
Acting generally to protect the unit-holders
Holding the pool of money and assets in trust in behalf of the investors
The selling price under a variable life insurance policy is:
The price at which units under the policy are bought back by the life company
The price at which units under the policy are offered for sale by the life company
Also known as the bid price
A fixed amount throughout
Other
Please Specify:
Policy fee payable by a variable life insurance policy owner is to cover _________________
The handling charges by professional investment managers
The price for each unit bought under the variable life insurance policy
The mortality costs of the variable life insurance policy
The administrative expenses of setting up the variable life insurance policy
Diversification in investment involves _________________
Putting all the funds under management into one category of investment
Spreading the risks of investment by not putting the fund into several categories investment
Reducing the risks of investment by putting one fund under management into several categories of investment
Reducing the risks of investment by putting all one’s eggs in one basket
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