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American_Bankers_Association

CTFA · Question #314

A universal life insurance policy provides two types of death protection. The first type, known as Option A, provides a level death benefit. As the cash value increases:

The correct answer is A. The amount of pure insurance protection decreases. See the full explanation below for the reasoning.

Estate Planning

Question

A universal life insurance policy provides two types of death protection. The first type, known as Option A, provides a level death benefit. As the cash value increases:

Options

  • AThe amount of pure insurance protection decreases
  • BThe amount of pure insurance protection increases
  • CThe amount of pure insurance protection remains same
  • DThe amount of pure insurance protection start vary

How the community answered

(33 responses)
  • A
    76% (25)
  • B
    3% (1)
  • C
    6% (2)
  • D
    15% (5)

Topics

#universal life insurance#death benefit#cash value#Option A

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