1.

What is universal life insurance? How does it differ from term life and whole life?

Universal life insurance: (Select the best answer below.)

		a. is classified as a cash dash value life insurance policyis classified as a cash-value life insurance policy.
		b. has a savings component like term life insurancehas a savings component like term life insurance.
		c. is a combination of whole insurance and a death benefitis a combination of whole insurance and a death benefit.

2.

What is variable life insurance? What are the advantages and disadvantages of variable life policies? How can individuals avoid the high fees of variable life insurance?

Variable life insurance: (Select the best answer below.)

		a. has a benefit that varies throughout the term of the policy.
		b. is an option for a term policy.
		c. is related to universal life insuranceis related to universal life insurance.
		d. has variable premiums.

3.

What is whole life insurance? What benefit does it provide that term insurance does not?

Whole life insurance: (Select the best answer below.)

		a. allows policyholders to terminate their policy but not withdraw any premiums they have paidallows policyholders to terminate their policy but not withdraw any premiums they have paid.
		b. has a fixed value for the policyholderhas a fixed value for the policyholder.
		c. is also called savings dash value life insuranceis also called savings-value life insurance.
		d. provides insurance as long as premiums are paidprovides insurance as long as premiums are paid.

4.

Describe the nonforfeiture and loan clasues of whole life insurance policies.

The nonforfeiture clause: (Select the best answer below.)

		a. allows you to receive a portion of the accumulated savings if the whole life policy is terminatedallows you to receive a portion of the accumulated savings if the whole life policy is terminated.
		b. allows you to receive the savings you accumulated if you terminate your whole life policyallows you to receive the savings you accumulated if you terminate your whole life policy.
		c. allows you to receive half of the savings you accumulated whenever you have a qualifying eventallows you to receive half of the savings you accumulated whenever you have a qualifying event.
		d. allows the policyholder to borrow at a lower rate than that offered by financial institutionsallows the policyholder to borrow at a lower rate than that offered by financial institutions.