7
AssignmentMultiple Choice

Buying Insurance

Question 7 • OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27

Which type of life insurance allows you to invest the cash value in mutual funds?

Answer
A
term life insurance
B
whole life insurance
C
variable life insurance
D
universal life insurance

Explanation

Variable life insurance lets you invest the policy’s cash value in investment options such as mutual funds. The cash value and death benefit can rise or fall with the performance of those investments. Term life insurance has no cash value, while whole and universal life generally do not offer this same investment choice.

AI-written and checked against the verified answer.

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