Variable Universal Life Insurance Policies

question 4

Multiple Choice

Variable universal life insurance policies

• A)have fixed premiums and a fixed benefit payout.
• B)have fixed premiums, but allow the benefit payout to vary with investment returns.
• C)have a fixed benefit payout, but allow the premium to vary with investment returns.
• D)allow both the premium and benefit payout to vary with investment returns.
• E)allow both the premium and benefit payout to vary with investment returns, but have a fixed maturity date.

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Definitions:

Barter System

An economic system where goods and services are directly exchanged for other goods and services without the use of money.

Monetary Exchange

The process of trading goods and services using money as a medium of exchange rather than direct barter.

Double Coincidence

A situation in a barter system where two parties each have something the other wants, allowing for an exchange without the need for money.

Limited Specialization

A situation in which individuals or entities focus on a restricted range of products or services to gain greater efficiency, but do not specialize to the extent that they produce only one good or service.