Question

The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the:

a) Premium payments
b) Death benefit
c) Surrender charges
d) Investment component

Answer 1

The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the investment component.

Step-by-step explanation:

The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the investment component.

Unlike other types of life insurance policies, such as whole life or term life, universal life insurance allows the policyholder to separate the different components of the policy. The investment component allows the policyholder to choose where the cash value is invested, such as stocks, bonds, or mutual funds.

This unbundled feature of universal life insurance gives policyholders more transparency and control over their policy.