VUL/ULP MOCK EXAM 1

People generally invest their money to provide: I. An improvement in their financial position II. A less comfortable standard of living III. Retirement income IV. Funds of paying necessary expenses and taxes when the person dies

Which of the following funds is comprised of a higher proportion of equity and a lower proportion of fixed income instruments?

Which of the following are the main characteristics of variable life insurance policies? I. The policies can be used for investments, as a source of regular savings and protector II. The withdrawal and protection benefit are determined by the investment performance of the underlying assets. III. The net withdrawal values of the policies are the gross withdrawal values shown in the policy which includes cash dividends up to the date of surrender, less all indebtedness and includes interest.

Which of the following statements are FALSE? I. The policy owners may request a partial withdrawal of the policy and the amount will be met by cashing the units at the offer price. II. The structure of charges and the investment content of a variable life policy are specified in the policy documents and the policy statements/ III. Some Variable life policies grant loans to policy owners which is limited to a percentage of the cash value IV. Commissions and office expenses are met by a variety of implicit charges, some of which are variable.

Which of the following statements about the feature of regular premium variable life policy are TRUE? I. Top-ups are usually allowed II. The level of cover can be varied III. Premium holidays are usually allowed

Which one of the following statements is NOT TRUE about the benefits of investing in variable life insurance policy?

Which of the following statements the difference between variable life insurance product and participating products? I. Variable life insurance products allow policy owners to change the premium payments but traditional participating life products do not. II. Variable life insurance products can take the form of whole life or Endowment policies but Traditional Life policies around III. Variable life insurance products allow the policy owner to pay future single premiums from time to add more units to his account but Traditional Life participating products do not.

Which of the following are some of the flexibility of variable life insurance policies I. Partial withdrawal II. Variation in sum assured III. Guaranteed withdrawal values

Which of the following statements about single variable life policies are TRUE? I. There is no fixed in a single premium variable life policy and therefore, it is technically whole life insurance II. Top-ups or single premium injections are allowed III. Policy owners have the flexibility or varying the life coverage

The benefits of investing in variable life funds include: I. Policy owners have access to a pooled and diversified portfolio of investment. II. The policy owner can easily change the level of premium payments as the product design of variable life insurance policies have clear structures which cater separately for investment and insurance protection. III. Policy owner can gain access to variable life funds managed by professional investment managers. IV. The policy owner is relieved of the day administration of his investment.

The flexibility benefits of investing in variable life funds include: I. Policy owners can easily change the level of sum insured and switch their investments between funds II. Policy owners can easily take premium holidays and single premium top-ups III. Variable life insurance products have simple product design with a clear structure which caters separately for investment and insurance protection IV. Policy owners can easily change the level of their premium payment

Which of the following statements describes the difference between variable life products and traditional participating life product? I. Variable life products allow policy owner to pay top-up premium from time to time to buy more units from his account unlike traditional participating life policies II. Variable life products allow policy owners to take premium holiday unlike Traditional participating life products. III. Variable life products can take the form of whole life or endowment policies unlike Traditional participating products.

Your client is a 35yrs old male, earning P35,000 a month, has savings and with a moderate risk tolerance. What product would you recommend?

In a Unit Trust Investment, the duties of the trustee include of these EXCEPT:

With traditional participating life insurance products, the allocations to policy owners of the dividends: I. Are not directly linked to the investments of the life company II. Are smothered III. Do not have the highs and lows of investment returns in good times IV. Are not fixed