Question

1-Choose the true statement about variable life insurance: Select one: a. Savings values are guaranteed. b....

1-Choose the true statement about variable life insurance:

Select one:

a. Savings values are guaranteed.

b. Cost is usually lower than term insurance.

c. The policy owner has flexibility in investment choice.

d. Investment risk borne by the insurance company.

2- The investments supporting the cash values of traditional whole life insurance policies are:

Select one:

a. Common stock/equity investments

b. Short-term government debt issues

c. Municipal debt

d. Federal government debt issues and real estate mortgages

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Answer #1

Ans 1) c. The policy owner has flexibility in investment choice.

Ans 2) d. Federal government debt issues and real estate mortgages

The investments supporting the cash values of traditional whole life insurance policies are Federal government debt issues and real estate mortgages.

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