A Variable Life Insurance Policy Is Considered Riskier Than a Traditional

question 74

Multiple Choice

A variable life insurance policy is considered riskier than a traditional whole life policy because it:

• A)invests savings more aggressively in securities that are riskier but offer higher potential returns.
• B)has no disability provision to waive premiums in the event of a serious accident or prolonged illness.
• C)may not allow the holder to renew the policy after the initial five year period has elapsed.
• D)pays only a very small death benefit unless the policy holder lives for at least 12 years after taking out the policy.

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Definitions:

Atmospheric Air

The mixture of gases surrounding the earth, primarily composed of nitrogen, oxygen, argon, carbon dioxide, and trace gases.

Water Vapor

The gaseous phase of water, forming clouds and contributing to the greenhouse effect.

Pulmonary Capillaries

Tiny blood vessels in the lungs where gas exchange occurs, allowing for the uptake of oxygen and the release of carbon dioxide.

Left Atrium

One of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it into the left ventricle.