Life Insurance Reviewer - Variable Part 5 | Take the Quiz

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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

10 Questions2 MinutesCreated by LearningLeaf321

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

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

Life Insurance Reviewer - Variable Part 5

Life Insurance Variable Quiz

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