New York State Life Insurance Exam Questions Practice Question
An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice of how the cash value will be invested. The insured should purchase
Correct Answer: C
Rationale: The ideal policy for an insured seeking flexibility in premium payments, a death benefit, and investment choices is C: variable universal life. This option allows policyholders to adjust their premiums and offers a death benefit while enabling them to invest the cash value in various options.
Option A, adjustable life, provides some flexibility but lacks the investment choice aspect. Option B, universal term life, is primarily focused on death benefits and does not accumulate cash value. Option D, graded premium whole life, has fixed premiums and limited investment options, making it unsuitable for the insured's needs.
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