An insurance policy in which fixed premium payments are invested in mutual funds of stocks, bonds, and money market instruments is called

Question

Quizplus · Accepted Answer

The insurance policy described in the question is a variable life insurance policy, where the premiums are invested in mutual funds consisting of stocks, bonds, and money market instruments. The policyholder takes on investment risk, as the policy's value will fluctuate with the performance of the mutual funds. A variable life insurance policy provides the potential for higher returns than other types of life insurance policies, but it also involves more risk.

An Insurance Policy in Which Fixed Premium Payments Are Invested