20
QuizMultiple Choice

Retirement Planning — Test

Question 20 • Advanced Financial Algebra

What is an advantage of the variable universal life insurance option?

Answer
A
guaranteed cash value growth
B
potential for higher returns through stock market
C
market risk exposure
D
a higher death benefit

Explanation

Variable universal life lets the policyholder invest the cash value in market-based options, such as stock funds. This creates the potential for higher returns, though the value can also fall and is not guaranteed. Therefore, the advantage is the potential for higher returns through the stock market.

AI-written and checked against the verified answer.

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