Vidyalelo
Commerce · Q292

Insurance

Graduate and Post Graduate · Commerce · question 292

Q292

Which of the following statements is correct?

A.
Policyholder cannot earn market rate of interest on his cash value
B.
In universal life plan, policyholder can vary payments of premium
Answer
C.
Universal life plan is a traditional plan of assurance
D.
Variable life insurance is a temporary plan of insurance

Answer: Option B

Solution

Answer: Option B
Solution:
Universal life can provide you with a variety of different payment options, including a flexibility of changing your death benefits, as well as the potential to accumulate cash value over time.
Hence, option (2) is correct.