Which of the following statements about variable universal life insurance is (are)true?
I Variable universal life insurance guarantees a minimum interest rate or case value.
II)Variable universal life insurance allows the policyowner to decide where the premiums are invested.

Question

Quizplus · Accepted Answer

II is true because variable universal life insurance provides the policyowner with the flexibility to choose how their premiums are invested among the available options offered by the insurance company. I is incorrect because variable universal life insurance does not guarantee a minimum interest rate or cash value; the cash value can fluctuate based on the performance of the chosen investments.

Which of the Following Statements About Variable Universal Life Insurance