All of the Following Statements About Universal Life Insurance Are

question 44

Multiple Choice

All of the following statements about universal life insurance are true EXCEPT

• A)Interest is credited to the policy's cash value each month.
• B)Any withdrawal of a policy's cash value reduces the amount of the death benefit.
• C)Interest credited to a policy's cash value is taxable for the policyowner in the year credited.
• D)The policyowner can add to a policy's cash value at any time subject to policy guidelines.

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Definitions:

Cabinet Members

High-ranking government officials, typically heads of departments or agencies, who serve as advisors to the President or head of state.

Federal Outlays

Government spending or expenditures, including all amounts paid out by the federal government, typically categorized by function.

Capital Budget

A Capital Budget involves the planning and allocation of funds for long-term investments and infrastructure projects.

Two-Thirds Majority Vote

A voting requirement where at least two-thirds of the members present must agree for a proposal to pass, often used for significant decisions.