Ann is considering the purchase of a life insurance policy with these characteristics: flexible premium payments,the insurance and savings components are separate,the interest rate credited to the savings is tied to a market interest rate but a minimum rate is guaranteed,and a monthly administrative fee is charged.Ann is considering buying

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The characteristics described match those of a universal life insurance policy, which offers flexible premium payments, separates the insurance and savings components, allows interest rates to be tied to a market rate with a minimum rate guaranteed, and typically incurs a monthly administrative fee.

Ann Is Considering the Purchase of a Life Insurance Policy