What Happens If a Policyholder with a Universal Life Insurance

question 27

Multiple Choice

What happens if a policyholder with a universal life insurance policy skips a payment?

• A)The policy is terminated after 30 days.
• B)The cash value is refunded and the policy terminated.
• C)Funds are withdrawn from the cash value to pay the premium.
• D)The future premiums increase marginally.

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Definitions:

Jeans

A type of trousers typically made from denim or dungaree cloth, often regarded as a staple in casual fashion.

Indifference Curves

A graph representing different bundles of goods between which a consumer is indifferent, showing the trade-offs a consumer is willing to make between two goods.

Bowed Inward

Describing a curve, specifically in the context of an economics graph, that concaves towards the origin, indicating increasing returns or efficiency.

Upward Sloping

refers to a graph line that shows an increase in one variable as another variable increases, commonly seen in supply curves.