Clayton buys an insurance policy that invests his set savings amount into financial assets without guaranteeing the return. Thus, Clayton has the opportunity to get a better return than the guaranteed rate. Which type of insurance policy does this scenario best describe?
A) investors life insurance
B) fixed-rate life insurance
C) term life insurance
D) whole life insurance
E) variable life insurance

Question

Quizplus · Accepted Answer

In this scenario, Clayton has purchased a variable life insurance policy. Insurance companies have created this type of policies that invest the savings amount into financial assets without guaranteeing the return. Thus, the policyholder does not get a guaranteed rate of return but has the opportunity to get a better return than the guaranteed rate.

Clayton Buys an Insurance Policy That Invests His Set Savings