VUL/ULP MOCK EXAMS QUESTIONS 2023 LATEST VERSION VERIFIED 100%

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B - People generally invest their money to provide: I. An improvement in their financial position II. A less comfortable standard of living III. Retirement income IV. Funds for paying necessary ... expenses and taxes when the person dies A. I,II and III B. I, III and IV C. I, II, and IV D. II, III and IV C - Which of the following funds is comprised of a higher proportion of equity and a lower proportion of fixed-income instruments? A. Bond Funds B. Cash Funds C. Managed Funds D. Mixed Funds C - Which of the following are the main characteristics of Variable Life insurance policies? I. The policies can be used for investments, as a source of regular savings and protection. II. The withdrawal and protection benefit are determined by the investment performance of the underlying assets. III. The net withdrawal values of the policies are the gross withdrawal values shown in the policy which includes cash dividends up to the date of surrender, less all indebtedness and includes interests. A. I only B. II only C. I and II only D. I, II and III B - Which of the following statements are FALSE? I. The policyowners may request a partial withdrawal of the policy and the amount will be met by cashing the units at the offer price. II. The structure of charges and the investment content of a Variable Life policy are specified in the policy document and the policy statement. III. Some Variable Life policies grant loans to policyowners which is limited to a percentage of the cash value. IV. Commissions and office expenses are met by a variety of implicit charges, some of which are variable. A. I and II only B. I and III only C. II and III only D. All of the above D - Which of the following statements about the feature of Regular Premium Variable Life Policy are TRUE? I. Top-ups are usually allowed. II. The level of cover can be varied. III. Premium holidays are usually allowed. A. I and II only B. I and III only C. II and III only D. I, II and III C - Which one of the following statements is NOT TRUE about the benefits of investing in a Variable Life insurance policy? A. The fund provides a highly diversified portfolio, thus, lowering the risk of investment. B. The fund relieves the investor from the hassles of administering his/her investment. C. The fund ensures definite high yield for an investor since it is managed by professionals who are well-versed in the management of risk of the investment portfolio. D. The fund enables small investors to participate in a pool of diversified portfolios in which he/she is unlikely to have access to with low investment capital. B - Which of the following statements describes the difference between Variable Life insurance products and traditional participating products? I. Variable Life insurance products allow policyowners to change the premium payments but traditional participating life products do not. II. Variable Life insurance products can take the form of Whole Life or Endowment policies but Traditional Life policies cannot. III. Variable Life insurance products allow the policyowners to pay future single premiums from time to time to add more units to his account but Traditional Life participating products do not. A. I only B. I and III only C. II and III only D. I, II and III C - Which of the following are some of the flexibility features of Variable Life insurance policies? I. Partial Withdrawal II. Variation in sum assured III. Guaranteed withdrawal values A. II only B. III only C. I and II only D. I, II and III C - Which of the following statements about Single Premium Variable Life policies are TRUE? I. There is no fixed term in a Single Premium Variable Life policy and therefore, it is technically Whole Life insurance. II. Top-ups or single premium injections are allowed. III. Policyowners have the flexibility of varying the life coverage. A. I and II B. I and III C. II and III D. I, II, and III D - The benefits of investing in Variable Life fund include: I. Policyowners have access to a pooled and diversified portfolio of investment. II. The policyowner can easily change the level of premium payments as the product design of Variable Life insurance policies have clear structures which cater separately for investment and insurance protection. III. Policyowners can gain access to Variable Life funds managed by professional investment managers. IV. The policyowner is relieved of the day to day administration of his investment. A. I, II, and III B. I, II, and IV C. I, III, and IV D. All of the above [Show More]

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