An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice of how the cash value will be invested. The insured should purchase

Rationale

Variable universal life insurance offers flexible premiums, a death benefit, and investment choices for cash value.

Variable universal life insurance combines the features of both whole life and universal life insurance, allowing policyholders flexibility in premium payments, the ability to adjust death benefits, and options for investing the cash value in various investment accounts, which can grow based on market performance.

A (adjustable life.) YOUR ANSWER

Adjustable life insurance provides some flexibility in premiums and death benefits but does not offer the same level of investment choice for the cash value as variable universal life. It typically allows for adjustments in coverage and payment amounts but lacks the investment component that can change based on market conditions.

B (universal term life.) YOUR ANSWER

Universal term life insurance is primarily focused on providing a death benefit for a specified term and does not accumulate cash value. While it offers some premium flexibility, it does not include the investment options for cash value that are characteristic of variable universal life policies.

C (variable universal life.) CORRECT

Variable universal life insurance is the only option that encompasses all three key elements: flexible premiums, a death benefit, and the ability to choose how the cash value is invested. This allows policyholders to tailor their policies to their financial goals and risk tolerance.

D (graded premium whole life.) YOUR ANSWER

Graded premium whole life insurance features fixed premiums that increase over time, along with a guaranteed death benefit and cash value accumulation. However, it does not provide the flexibility in premium payments or the investment choices available in variable universal life, making it less suitable for the insured's needs.

Conclusion

In summary, variable universal life insurance is the ideal choice for an insured seeking flexibility in premium payments, a death benefit, and the ability to invest cash value. Other options, such as adjustable life, universal term life, and graded premium whole life, either lack one or more of these key features or do not provide the investment flexibility that variable universal life offers. This makes it the most suitable product for the insured's requirements.

An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice of how the cash value will be invested. The insured should purchase

Variable universal life insurance offers flexible premiums, a death benefit, and investment choices for cash value.

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