Tennessee Insurance Practice Exam 2026 – All-in-One Resource for Exam Success!

Question: 1 / 400

Which of the following elements is associated with a Variable Life policy?

A fixed, level premium

Adjustable death benefit

Guaranteed cash value accumulation

Investment in equity markets

Variable Life policies are unique in that they provide policyholders with the opportunity to invest a portion of their premiums in various investment options, including equity markets. This investment aspect allows the cash value and death benefit of the policy to fluctuate based on the performance of these investments. Unlike traditional whole life insurance, which typically offers fixed premium payments and guaranteed cash value, Variable Life policies allow for a varying degree of risk and potential reward based on market conditions.

This characteristic is significant for policyholders looking for growth potential linked to market performance, which is why "investment in equity markets" is the correct answer in this context. The ability for policyholders to allocate their cash value among different investment options, such as stocks or mutual funds, is a foundational element of Variable Life insurance.

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