What feature is held exclusively by variable universal life insurance?

Prepare for the Life Insurance Policies Exam with our test questions on policies, provisions, options, and riders. Sharpen your skills with flashcards and multiple-choice questions with detailed explanations. Ace your exam with confidence!

Variable universal life insurance is characterized by its flexible premium payments, adjustable death benefits, and the significant investment component that allows policyholders substantial control over how their cash value is invested. This flexibility includes the option for policyowners to select investment accounts that range from bond funds to stock funds, each carrying different levels of risk and potential returns.

The feature of selecting investments specifically sets variable universal life insurance apart from other types of permanent life insurance. While policyowners have the ability to make changes to premiums and death benefits, and they can contribute additional funds, the prominent aspect that differentiates variable universal life is the investment control it offers. This allows policyowners to tailor their financial strategy according to their risk tolerance and return expectations, thereby influencing their cash accumulation and overall policy performance.

In contrast, while the other features mentioned—such as the ability to modify premiums or face amounts—are available in some form in other life insurance products, the unique opportunity to actively manage investments within the policy is what distinctly defines variable universal life insurance.

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