Question

Which of the following statements is TRUE concerning a variable life insurance policy?

a. There is a minimum death benefit
b. There is neither a minimum nor a maximum cash value
c. A partial surrender reduces the face amount of the policy
d. All of the above

Answer 1

A variable life insurance policy typically has a minimum death benefit.

Step-by-step explanation:

A variable life insurance policy is a type of life insurance that offers both a death benefit and a cash value component. The statements provided are as follows:

1. There is a minimum death benefit - TRUE. Variable life insurance policies typically have a minimum death benefit set by the insurance company.
2. There is neither a minimum nor a maximum cash value - FALSE. Variable life insurance policies have a cash value that can fluctuate depending on the performance of the underlying investment options.
3. A partial surrender reduces the face amount of the policy - FALSE. A partial surrender in a variable life insurance policy allows the policyholder to withdraw a portion of the cash value without reducing the death benefit. However, it may reduce the overall cash value of the policy.

Therefore, the correct statement is a. There is a minimum death benefit.