Which of the following is not guaranteed in a whole life policy?
Asked by: Rhoda Zieme | Last update: October 31, 2025Score: 4.2/5 (18 votes)
Which is not guaranteed under a variable whole life policy?
The cash value of a VUL policy is not guaranteed. The investment return and principal value of the variable subaccounts will fluctuate. Your cash value, and perhaps the death benefit, will be determined by the performance of the chosen subaccounts.
What is guaranteed in a whole life policy?
Whole life insurance guarantees payment of a death benefit to beneficiaries in exchange for level, regularly-due premium payments. The policy includes a savings portion, called the “cash value,” alongside the death benefit.
Which of the following is not guaranteed in a whole life policy: settlement options, nonforfeiture options, dividend scale policy, loan values?
Final answer: The Dividend scale is not guaranteed in a whole life policy as it fluctuates based on the insurer's performance (C). Other aspects like death benefit, cash value, nonforfeiture, and policy loan values are typically guaranteed.
Which of the following information is not included in a whole life policy?
Final answer: The key information typically included in Whole Life insurance policies comprises the policy's loan interest rate, premium, and cash value table. However, the policy's guaranteed dividend table is not always required, as dividends are not guaranteed for all Whole Life policies.
Guaranteed vs Non-Guaranteed Values of Whole Life Insurance Policies
Which of the following is not applicable in life insurance?
The principle of indemnity is not applicable on life insurance policy because one cannot estimate the loss due to the death of a person. Was this answer helpful? Which of the following is not applicable in a Life Insurance contract?
Which of the following is not a feature of whole life insurance?
Which of the following is NOT a feature of whole life insurance? The policy will return all premiums if you survive to the end of the policy.
Which of the following is not guaranteed in a whole life insurance?
Dividends are not guaranteed. Indeterminate Premium Whole Life: An indeterminate premium whole life policy is like a non-participating whole life plan of insurance except that it provides for adjustable premiums.
Which of the following is not a dividend option on whole life insurance?
Final answer: The One-year term is not a dividend option available in life insurance policies, whereas Paid-up insurance and Interest only are legitimate options. Understanding these distinctions is important for policyholders considering how to utilize dividends.
Which of the following is not a life insurance settlement option quizlet?
Which of the following is NOT a life insurance settlement option? All of these are life insurance settlement option EXCEPT "Extended term option."
What is non guaranteed life insurance?
With a non-guaranteed policy, the owner, in exchange for a lower premium and possibly better return, is assuming much of the investment risk as well as giving the insurer the right to increase policy fees. If things don't work out as planned, the policy owner has to absorb the cost and pay a higher premium.
What is covered by a whole life policy?
If you pass away, your family or other people you choose (beneficiaries) will receive a death benefit, which is a lump sum of money. It can help cover expenses like funeral costs, debts or provide financial support for your family. A unique feature of whole life insurance is that it builds cash value over time.
What are the three types of whole life policies?
Whole life insurance provides lifelong coverage with fixed premiums and a cash value component. It includes variations like traditional, variable, and universal whole life, each offering different levels of flexibility and investment options.
Which is not a whole life insurance?
Term life is more affordable but lasts only for a set period of time. On the other hand, whole life insurance tends to have higher premiums but never expires.
Which of the following is guaranteed under a variable whole life insurance policy Quizlet?
Variable whole life policies have a guaranteed minimum death benefit.
Which statement is correct about whole life insurance?
Final answer: Among the given options, the accurate statement about whole life insurance is that it can provide lifelong coverage. This type of policy also has a cash value component that can be accessed through loans. It does not necessarily mature at retirement.
Are whole life dividends guaranteed?
Dividend-paying whole life insurance is a type of permanent life insurance policy that offers both a death benefit and the potential to receive dividends from the insurance company's profits. These dividends are not guaranteed and depend on the insurer's financial performance.
Which of the following is not one of a life insurance policy's nonforfeiture options?
Final answer: The '1-year term insurance option' is not a standard nonforfeiture option in life insurance policies. Nonforfeiture options typically include the extended term insurance option, reduced paid-up insurance option, and cash surrender option.
What is guaranteed in a variable whole life policy?
Variable life insurance is a type of permanent life insurance policy that features a death benefit and a cash value growth component. The cash value lets you invest in various securities, such as stocks, bonds, and mutual funds. These investments can provide more upside potential, but also more risk.
What are the non guaranteed elements of an insurance policy?
2.4 Nonguaranteed Element (NGE)
Examples of premiums, charges, or benefits that can be changed at the discretion of the insurer may include credited interest, cost of insurance (COI) charges, bonuses, indeterminate premiums, index parameters used to determine credited interest, and expense charges.
What is a guaranteed whole of life plan?
You can also get a policy where your premium is fixed, called a 'guaranteed' whole of life policy and your benefit is set at an agreed level. You will generally pay more throughout the period of cover for this type of policy than for one where the premium is not fixed.
What is the biggest weakness of whole life insurance?
Lack of flexibility
Whole life insurance policies have limited flexibility compared to other life insurance products . Death benefit amounts and premiums can't be changed, so it's crucial to carefully review the terms and conditions before finalizing a whole life insurance contract.
Which of the following is not an example of a whole life insurance policy?
The types of whole life insurance generally include Single Premium, Straight Life, and Limited Payment. These insurance types are known for having set premiums and a death benefit that does not expire. However, Increasing Term is not a type of whole life insurance.
What is the interest rate on whole life insurance?
Whole Life Insurance also earns interest, or “cash value,” at a guaranteed rate of 4.5%. * You can borrow from that cash value, or you can buy a smaller, paid-up policy — with no more premiums due.