Which of the Following Statements About Variable Life Insurance Is

question 11

Multiple Choice

Which of the following statements about variable life insurance is true?

• A)Premium payments are flexible.
• B)The death benefit cannot be higher or lower than a guaranteed,specified,value.
• C)The policyowner has the option of investing the cash value in several investment accounts.
• D)The cash surrender value of the policy is guaranteed.

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Definitions:

W-3 Forms

A tax form used in the United States to transmit a summary of all W-2 forms issued by an employer to the Social Security Administration.

Total Federal Income Tax

The sum of all taxes owed to the federal government by an individual or entity in a fiscal year after deductions and credits.

FICA-OASDI

Stands for Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance; it's a payroll tax that funds Social Security and Medicare in the United States.

FICA-Medicare

A portion of the Federal Insurance Contributions Act tax that funds Medicare, a federal health insurance program for people who are 65 or older and certain younger people with disabilities.