Question

Unlike Universal Life, most of the investment vehicles in Variable Universal Life policies do not guarantee return.

a) True
b) False

Answer 1

True - In Variable Universal Life (VUL) policies, most of the investment vehicles do not guarantee a return.

Step-by-step explanation:

True

In Variable Universal Life (VUL) policies, unlike Universal Life (UL) policies, most of the investment vehicles do not guarantee a return. This is because VUL policies typically have investment options that are linked to the performance of underlying assets such as stocks and bonds, making them subject to market fluctuations. This provides potential for higher returns but also carries greater risk compared to UL policies.

However, it is important to note that there may be some investment options within VUL policies that offer a guarantee, so it is crucial to review the policy details.