VUL HARD 1-10

Create an image depicting a financial advisor explaining variable life insurance policies to a client, with visual elements like charts and policy documents in a modern office setting.

Master Variable Life Policies Quiz

Test your knowledge on variable life insurance policies and their unique features with this engaging quiz! Designed for financial enthusiasts, this quiz will challenge your understanding of policy benefits, investment instruments, and market dynamics.

11 thought-provoking questions
Multiple choice format
Increase your financial literacy!

11 Questions3 MinutesCreated by LearningInvestor574

2. Which one of the following statements about the flexibility features of variable life policies is FALSE?

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

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

Policy holders have the flexibility of switching from one fund to another provided it satisfies the company's switching criteria.

Icy holders have the flexibility of increasing or decreasing their premiums for regular premiums variable life policies.

5. Which of the following statements is FALSE?

Rating 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 twistinq.

Switching is a facility allowing policy holders to switch to another variable life funds offered by company.

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

Equities

Rrants

Variable life policies

Fixed income securities

10. Which of the following statements about twisting is FALSE?

Twisting is a special form of misrepresentation

It refers to an agent inducing a policy holder 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

11. Mr. Juan dela Cruz is currently earning P30,OOO/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 for him to buy?

Participating endowment

Variable life policies

Participating whole life

Annuities

14. A unit trust is ____________________________

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

A close-end fund and does not have to dispose of its assets if a large number of investors sell their shares

One whereby investor buys units in the trust itself and not shares in the company

An organization registered under the Securities and Exchange Commission (SEC) which usually invests in a wide range of equities and other investments.

17. 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 underlvinq assets.

The policy benefits are guaranteed.

18. Why is it important that the customer must understand the sales proposal in full?

Because the insurer does not guarantee any return.

Because the impact of changes in investment or condition on variable life policy borne solely by the customer

Because the agent may give the wrong recommendations.

Because the policy holders expect higher returns.

20. Which one of the following statements is FALSE?

Variable life insurance policies offer investors policies with values and indirectly linked to the investment performance of the life company.

Life company will carry out a valuation of its funds yearly and any surplus may be allocated to participating policy holders as cash dividends.

Both whole life and endowment policies can be used as investment mediums with benefits that become payable at a future date.

The investment element of variable life policies varies according to underlying assets of portfolio.

21. Which of the following statements about option to top-up under variable life insurance products is FALSE?

Policy owners mav buy additional units of the variable life fund and these units will be allocated to new variable life insurance policies.iable life insurance policies offer investors policies with values and indirectly linked to the investment performance of the life company.

Further premiums at time of top-up will be used in full, after deducting charges for top-ups, to purchase additional units of the variable life funds.

To top-up a policy, the policy owner pays further single premium at the time of top-up.

Policy owners are normally allowed to top-up their policies at any time, subject to a minimum amount.

24. Investing in bonds offer the following advantages EXCEPT

It offers protection to the principal and guaranteed steady flow of income.

It is a place of temporary refuge when the investor foresees that the market outlook is uncertain.

It allows the investor a chance for capital preservation

It enables the investors an opportunity for capital appreciation.

VUL HARD 1-10

Master Variable Life Policies Quiz

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