Variable Life Differs from Universal Life in That

question 82

Multiple Choice

Variable life differs from universal life in that

• A)variable life has an investment component and universal life does not.
• B)universal life has an investment component and variable life does not.
• C)variable life's cash value depends on an underlying portfolio of financial investments.
• D)variable life provides a guaranteed investment return.

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Definitions:

Contract Amount

The total financial obligation or the sum involved in a contract agreed upon by the parties.

Service of Process

The procedure by which a party to a lawsuit gives an appropriate notice of initial legal action to another party (such as a defendant), court, or administrative body to exercise jurisdiction over that person so as to enable that person to respond to the proceeding.

Intended Beneficiary

An individual or entity explicitly chosen to benefit from a contract, even though they are not a direct party to the agreement.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, even though the benefit was not the contract’s primary purpose or intention.