A Comparison of Variable Life Insurance to a Standard Whole

question 211

Multiple Choice

A comparison of variable life insurance to a standard whole life plan would reveal that

• A) they are essentially identical.
• B) variable life offers only pure insurance but does so at a very low cost, while a standard whole life plan costs more but offers both insurance and a savings plan.
• C) both a standard whole life and variable life insurance offer both life insurance and savings, but variable life invests the savings more aggressively than whole life.
• D) variable life is only available to people who want at least $1 million in coverage-and are willing to pay for it.

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Definitions:

Bargaining Process

The negotiation or discussion between two or more parties to come to a mutually acceptable agreement or contract.

Internet

A global network of computers and servers enabling information exchange and communication.

Invitation To Treat

An expression indicating willingness to negotiate, which does not necessarily constitute an offer but invites others to make an offer.

Self-Service

A business model or system where customers perform tasks typically done by staff members, such as checkout or order placement, on their own.