Variable Life insurance policy owners may make withdrawals in terms of ______________________

Which one of the following statements about the flexibility features of variable life policies is FALSE?

The investments returns under a Variable Life insurance policy __________ I. Are not guaranteed. II. Are assured. Ill. Are linked to the performance of the investment fund management by the life company. IV. Fluctuate according to the rise and fall of the market prices

Which of the following statements are TRUE? I. The policy value of Variable Life policies is determined by the offer price at the time of valuation. II. The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of surrender. Ill. The life company needs to maintain a separate account for Variable life Policies district from the general account.

Which of the following statements is FALSE?

Which of the following statements about Variable life policies are TRUE? I. Offer price is used to determine the numbers of units to be cancelled from the account. II. The margin between the bid and offer price is used to cover the management cost of the policy. Ill. The policy value is calculated based on the bid price of units allocated into the policy.

What is the most suitable Investment Instrument for an Investor who is Interested in protecting his principal and receiving a steady stream of Income?

What are the disadvantage of investing in common shares? I. Divides are paid not more than fixed rates. II. Investors are exposed to market and specific risks. Ill. Share can become worthless if company becomes Insolvent.

Which of the following statements about the differences between Variable Life policies and Endowment policies are FALSE? I. The policy values of Variable Life and Endowment policies directly reflect the performance of the fund of the life company. II. The premium and benefits of the Endowment policies are described at inception of the policy whereas Variable life policies are flexible as they are account driven. Ill. The benefits and risks variable life and Endowment policies directly accrue to the policy owners

Which of the following statements about twisting is FALSE?

Mr. juan dela cruz is currently earning P30,000/month. He is 35 years old and has a reasonable amount of savings. He has a reasonable amount of saving. He has moderate level of risk tolerance. What kind of policy would you recommended for him to buy.

What are the benefits available when investing in variable life funds? I. The Variable Life funds offer policy owners an access to a pooled of diversified portfolios. II. The Variable Life policy owner can vary his premium payments, take premium holidays, add single premium Top-ups and change the level of sum assured easily III. The Variable Life policy owners can have access to a pool of qualified and trained professional fund manager.

Rank the following in terms of their liquidity, from the least liquid to the most liquid: I. Short Term Securities II. Property III. Cash IV. Equities

A UNIT TRUST is _____________

Under Variable Life insurance policies __________________ I. There is no guaranteed minimum sum assured for the purpose of declaring dividends. II. There is no guaranteed minimum sum assured as a level of insurance protection. Ill. Each of the policy owner's premium will be used to purchase units, the number of which is dependent on the selling price of each unit. IV. Purchase of units can only be made from the variable Life fund itself, which will then create new units and add investment monies to the value of the fund.

The benefits of investing in Variable Life funds Include________________ I. Policy owners have access to pooled or diversified portfolios of the investment. II. Policy owners can easily change the level of the premium payments as the product design of Variable life insurance policies have clear structures which cater separately for investment and insurance protection. Ill. Policy owners can gain access to Variable Life funds managed by professional investment managers with proven track records.

Which of the following BEST describes the policy benefits of variable life policies?

Why is it Important that the customer must understand the sales proposal in full?

Which of the following statements about rebating are TRUE? I. Rebating Is prohibited under the Insurance Code. II. Rebating deals with offering the prospect a special inducement to purchase a policy. ill. Rebating will enhance the sales performance and uphold the prestige of an advisor

Which one of the following statements is FALSE?

Which of the following statements about the option to top-up under Variable Life Insurance product is FALSE?

The characteristics of a Variable Life insurance policy include___________ I. Its withdrawal value and protection benefits are determined by the Investment performance of the underlying assets. II. Its protect costs are generally met by implicit charges III. Its commission and company expenses are met by a variety of implicit charge with normally 6 months notice given by the life companies prior to any change.

Which of the following statements about single premium variable life policies are TRUE? I. Theirs is no fixed term in a Single premium variable life policy and therefore, they are technically Whole life insurance. II. Top-ups single premium Injections are allowed In these plans. Ill. Policy owners have the flexibility of varying the level cover

Investing in bonds offer the following advantages EXCEPT?

Which of the following statement about Variable life policies are TRUE? I. The withdrawal value is not guaranteed. II. The volatility of the returns depends on the investments strategy of the fund. Ill. Variable life policy owner has direct control over the investment decisions of the Variable life funds

A single premium variable life insurance policy:

Which of the following statements about the characteristics of Variable Life policies are TRUE? I. Variable life policies generally have larger exposure to equity investment than with participating and other traditional policies. II. The protection costs are generally met by implicit charges, which vary with age and level of cover. Ill. Commissions and company expenses are met by a variety of explicit charges, some of which are variable.

Which of the following statements about benefits in variable life fund is FALSE?

The flexibility benefit of investing in variable life funds Include__________ I. The policy owner can easily change the level of sum assured and switch their investment between funds. II. Policy owners can easily take premium holidays and add single premium to top-ups. Ill. Variable life insurance products have a simple product design with a clear structure, which cater separately for investment and insurance protection. IV. Policy owners can easily change the level of their premium payment.

The fundamental differences between traditional participating life insurance policies and variable life insurance policies include_________ I. Variable life insurance policies are less likely to offer more choices in terms of the type of investment funds. II. The investment elements of variable life insurance policies a made known to the policy owner at the outset and are investment in a separately identifiable fund which is made up of units of investment. Ill. Variable life insurance policies offer the potential for higher returns. IV. Traditional participating policies aim to produce a steady return by smoothing out market fluctuation

The switching facility under Variable life insurance policies is very useful___________

Which of the following statements about surrender value under traditional participating life insurance products is TRUE?

Which of the following statements about the risk of investment in Variable life funds is TRUE?

What would be the withdrawal value after a year? Offer price =P16.00 Bid-offer spread=4.5% Number of units bought=25,000 Policy fee=Pl,8OO Admin and Mortality charge=P8,750 Top-up Fee=P700 Admin for top-up=P2,000 Sum assured is 190% of single premium or the value of the units, whichever is higher. Assumptions: 1. Charge and fees deducted after the single premium has been invested into the account. 2.The growth rate of the unit price and the bid offer spread is maintained at 8% and 4.5% respectively.

The product costs under a variable life insurance policy_____________ I. Are met by flat charges for regular premium plans. II. Are generally covered by the cancellation of units in the fund. Ill. Are generally met by charges stipulated openly in the policy terms. IV. Vary with age of policy owner and level of cover.

Which of the following statements about diversification in portfolio management is FALSE?

What are the advantages of investing preferred shares? I. It gives shareholders the right to a fixed dividend II. Has the priority over company assets during dissolution III. They enjoy the benefits of capital appreciation.

The objective of satisfying customers' need of profitably can be achieved by an advisor through: I. The giving of freebies to the customers. II. Extensive investment training by the company. Ill. The use of sales plan, where sales goals, strategies and objectives are coordinated with market analysis segmentation analysis, segmentation and targeting. IV. The giving of monetary assistance and discount to customer

Which of the following statements is true about CASH?

Under a regular premium Variable Whole life insurance plan_________ I. Premium top-ups and holidays, subject to the life company's administrative rules are usually. II. Life protection is the main objective of the plan with investment as a nominal purpose. Ill. Withdrawals after the payment of a few year's premium are usually allowed. IV. A single premium contribution is made to the policy which uses the premium to purchase units in a Variable life funds and to provide a certain level of life cover.

Which of h following statement about investment objective is FALSE?

Which of the following is/are the main characteristic/s of Variable Life policies? I. The policies can be used for investment, as a sources of regular saving and protection II. The withdrawal values and protection benefits are determined by the investment performance of the underlying assets Ill. The net cash values of the policies are the gross cash values shown in the policy that includes dividends up to the date of surrender, less any indebtedness including interest.

Risk can be classified into two particular categories in relation to investment. They include ____________ I. The risk of not losing some or all of a person's initial investment. II. The risk of rate of return on the investment not matching up to the individual's expectation. Ill. The risk of rate of return on the investment matching up to the individual's expectation. IV. The risk of losing some or all of a person's initial investment.

The duties of the trustees of a unit trust do not include:

The policy fee payable by a variable life insurance policy owner is to cover ___________

The selling price under a Variable life insurance policy is :

In the risk-return profile of cash funds, balanced funds managed funds and equity funds, a risk-return graph will show that ____________ I. Higher return normally comes with lower risk II. Higher return normally comes with higher risk Ill. At the top end of the graph are equity funds IV. The relatively risk-less cash funds sit at the bottom end of the graph

Diversification in investment Involves ________________________

Variable Life funds can be Invested in any financial instruments including cash funds, bonds funds, equity funds, property funds, specialized funds and diversified funds. Equity funds _____________

With traditional participating life insurance products, the allocation to policy owners in the form of dividends _____________________ I. Are not directly linked to the life company's investment performance. II. Have already been smoothened by the life company Ill. Do not have the highs and lows of investment returns as in good investment years of the life company IV. Are not fixed at the inception of the policy, but are dependent on the investment performance of the life company