Interest/market-sensitive/adjustable life products

Interest sensitive whole life

Which life insurance policy credits interest based on current rates declared by the insurer and includes a guaranteed minimum rate?

Transparent breakdown of policy components

Which of the following features is unique to Universal Life Insurance?

Variable life insurance

Which policy allows the policyholder to invest the cash value in stock market-like subaccounts?

Variable life

In which product does the policyholder bear the investment risk?

Variable universal life

Which type of life insurance combines the investment features of variable life with the flexibility of universal life?

Variable life

Which of the following policies generally has fixed premiums, but variable death benefits and cash values based on

Adjustable life

Which life insurance product allows you to change the face amount, premium payments, and type of protection (term vs. whole)?

Variable universal life

Which life insurance policy is most sensitive to market performance and offers no guaranteed minimum interest?

Universal

Which of the following does NOT include investment options in the stock market?

Interest sensitive whole life

Which policy typically offers level premiums, but builds cash value that may rise or fall with the insurer’s interest rate assumptions?

Interest-Sensitive Whole Life (Current Assumption Life)

A whole life policy where cash value growth depends on current interest rates set by the insurer, with a guaranteed minimum.

Universal life insurance

A permanent life insurance policy with flexible premiums, adjustable death benefits, and cash value that earns interest based on the insurer’s current rates.

Variable life

A permanent policy with fixed premiums, but investment-based cash value and a fluctuating death benefit.

Variable universal life

A flexible premium, investment-based life insurance policy where the policyholder chooses from subaccounts for cash value growth.

Adjustable life

A policy that blends term and whole life, allowing the insured to adjust the face amount, premiums, and coverage period.

Interest sensitive

Whole life + cash value tied to interest rates

Universal life

Flexible premiums + insurer-based interest + adjustable death benefit

Variable life

Fixed premium + market-based cash value and death benefit

Variable universal life

Flexible premiums + investment options chosen by policyholder

Adjustable Life

You can adjust face amount, premiums, and structure (term/whole)