23
QuizMultiple Choice

Retirement — Test

Question 23 • Financial Math

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

Answer
A
market risk exposure
B
potential for higher returns through stock market
C
guaranteed cash value growth
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.

Previous
Next