Question

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges, and the:

A) Premium payments
B) Investment returns
C) Cost of insurance
D) Policy surrender value

Answer 1

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges, and the cost of insurance. This type of policy provides more transparency and control to the policyholder. Correct option is C.

Step-by-step explanation:

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges, and the cost of insurance. This type of policy provides more transparency to the policyholder by separating and disclosing different components such as the cash value, investment returns, and charges. It allows the owner to have more control and understanding of the policy's financial aspects.