Life Insurance Reviewer - Variable Part 2
Life Insurance Knowledge Quiz - Variable Part 2
Test your understanding of variable life insurance with our insightful quiz! This quiz covers a variety of important topics, including liquidity, policy benefits, and regulatory practices related to variable life policies.
Enhance your knowledge and see how well you understand the complexities of variable life insurance. Take the quiz now!
Rank the following in terms of liquidity, from the least liquid to the most liquid:
I. Short Term Securities
II. Property
III. Cash
IV. Equities
IV, II, III, I
III, I, IV, II
II, I, IV, III
II, IV, I, III
What are the benefits available when investing in variable life funds?
I. The variable life funds offer policyholders an access to pooled or diversified portfolios
II. The variable life policyholder can vary his premium payments, take premium holidays, add single premium top-ups and change the level of sum assured easily
III. The variable life policyholder can have access to a pool of qualified and trained professional fund managers
I and II
I and III
I, II and III
II and III
Mr. Juan dela Cruz is currently earning Ps. 30,000/month. He is 35 years old and has a reasonable amount of savings. He has a moderate level for risk tolerance. What kind of policy would you recommend him to buy?
Participating endowment
Variable life policies
Participating whole life
Annuities
Which of the following statements about twisting are 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
Which of the following about rebating is TRUE?
I. Rebating is prohibited under the Insurance Code
II. Rebating deals with offering the prospect a special inducement to purchase a policy
III. Rebating will enhance the sales performance and uphold the prestige of an agent
I and II
I and III
II and III
II and III
Why is it important that the customer has to understand the sales proposal completely?
Because the insurer does not guarantee any return
Because the impact of changes in investment condition on variable life policy borne solely by the customer
Because the agent may give the wrong recommendations
Because the policyholders expects higher returns
Which of the following BEST describes the policy benefits of variable life policies?
The policy benefits are payable only on death or disability
The policy benefits will depend on the long-term performance of the life company
The policy benefits are directly linked to the investment performance of the underlying assets
The policy benefits are guaranteed
The benefits of investing in variable life funds include ____________________.
I. Policy owners have access to pooled or diversified portfolios of investment
II. Policy owners can easily change the level of the premium payments as the product design of variable life insurance policies have clear structures which cater separately for investment and insurance protection
III. Policy owners can gain access to variable life funds managed by professional investment managers with proven track records
IV. Policy owners can buy a variable life insurance policy only with a high initial investment
I, II and IV
I, III and IV
I, II and III
II, III and IV
Under variable life insurance policies _________________________.
I. There is no guaranteed minimum sum assured for the purposed of declaring dividends
II. There is not guaranteed minimum sum assured as a level of life insurance protection
III. Each of the policy owner’s premium will be used to purchase units, the number of which is dependent on the selling price for each unit
IV. Purchase of units can only be made from the variable life fund itself, which will then create new units and add the investment monies to the value of the fund
I and IV
II and IV
III and IV
II and III
Which of the following statements about single premium variable life policies are TRUE?
I. There is no fixed term in a single premium variable life policy and therefore, they are technically whole life insurance
II. Top-up single premium injections are allowed in these plans
III. Policyholders have the flexibility of varying the level cover
I, II and III
II and III
I and II
I and III
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