Vidyalelo
Commerce · Q772

Insurance

Graduate and Post Graduate · Commerce · question 772

Q772

In which type of policy, death benefits and cash value varied with investment experience?

A.
Traditional cash value plan
B.
ULIP
C.
Universal Life Ins
D.
Variable life ins
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In Variable life insurance policy, death benefits and cash value varied with investment experience. A variable life insurance policy does offer a guaranteed death benefit, which will not fall below a minimum amount even if the invested assets devalue significantly. The variable death benefit is equal to the cash value at the time of death, plus the face value of the insurance.