LLQP (Life Licence Qualification Program) Practice Exam · Question
Which of the following statements about Universal Life (UL) insurance is correct?
Universal life insurance offers flexibility, allowing the policyowner to vary premium payments and choose from different investment accounts for the policy fund
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Question: Which of the following statements about Universal Life (UL) insurance is correct?
Answer options:
- The investment component grows on a guaranteed basis only.
- Premiums are fixed and cannot be changed. ✅ Policyholders can choose from various investment options for the cash value component, which has tax-deferred growth.
- The death benefit is always level and can never be changed.
Correct answer: Policyholders can choose from various investment options for the cash value component, which has tax-deferred growth.
Explanation: Universal life insurance offers flexibility, allowing the policyowner to vary premium payments and choose from different investment accounts for the policy fund. This fund grows on a tax-deferred basis within the policy.
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Question explanations
- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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