Question

A Variable life policy can be characterized by investing cash values in stocks, bonds, or other investment-like vehicles. Which statement below is NOT TRUE regarding this kind of life insurance product?

A. The death benefit amount is dependent upon the performance of securities.
B. Variable life cash values are deposited in a separate account outside of the contract.
C. Variable life provides a guaranteed minimum death benefit.
D. Agents only need a life insurance license to sell this product.

Answer 1

The correct statement that is NOT TRUE regarding the Variable life insurance product is Option D: Agents only need a life insurance license to sell this product.

Step-by-step explanation:

The correct statement that is NOT TRUE regarding the Variable life insurance product is Option D: Agents only need a life insurance license to sell this product.

Variable life insurance is a type of policy that allows policyholders to invest their cash values in stocks, bonds, or other investment-like vehicles.

The death benefit amount is dependent upon the performance of securities (Option A) and variable life cash values are deposited in a separate account outside of the contract (Option B).

Variable life insurance does provide a guaranteed minimum death benefit (Option C). However, it requires agents to have additional licenses, such as a securities license, in order to sell this product, in addition to a life insurance license.