Vidyalelo
Commerce · Q421

Insurance

Graduate and Post Graduate · Commerce · question 421

Q421

All of the following are characteristics of variable life insurance EXCEPT:

A.
Flexible premium payments
Answer
B.
Cash value is not guaranteed
C.
Policy owner selects where savings reserve is invested
D.
Minimum Death benefit is guaranteed

Answer: Option A

Solution

Answer: Option A
Solution:
All of the following are characteristics of variable life insurance except flexible premium payments. A flexible premium annuity allows the 'annuitant', or the owner of the annuity, to make premium payments over a number of years. You would have to pay a small amount to start the annuity, but you make contributions over a number of months or years.