With Universal, Current Assumption, and Variable Universal Life Insurance Policies

question 6

True/False

With universal, current assumption, and variable universal life insurance policies, the policyowner may discontinue premium payments at any time without lapsing the policy, as long as the surrender value is sufficient to cover the next deduction for the cost of insurance and expenses.

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Definitions:

Additional Costs

Expenses incurred that are above the initially planned or estimated amounts.

Plant Assets

Long-term physical assets used in the operating activities of a business, such as machinery, buildings, and equipment.

Current Period

Refers to the specific time frame, such as a month, quarter, or year, currently under consideration or analysis.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair market value of its net identifiable assets.