20
QuizMultiple Choice

Life Insurance — Quiz

Question 20 • Financial Math

How do the premium structures of the two life insurance options compare?

Answer
A
The whole life insurance has flexible premiums, while the variable universal life insurance has fixed premiums.
B
The whole life insurance has fixed premiums, while the variable universal life insurance has flexible premiums.
C
Both policies have fixed premiums.
D
Both policies have flexible premiums.

Explanation

Whole life insurance generally requires fixed, scheduled premium payments. Variable universal life combines investment options with universal life flexibility, allowing the policyholder to adjust premium payments within policy limits. Therefore, whole life has fixed premiums, while variable universal life has flexible premiums.

AI-written and checked against the verified answer.

Previous
Next