MID TERM ESSAY QUESTIONS A. Variable life insurance has the premiums invested in separate accounts and the face value may increase if the investment results are favorable. Prospects are those who desire life insurance at a fixed, level premium but want to have the potential for equity type gains and losses in the face value. This type of policy may provide protection against inflation. B. Term insurance can be used to insure someone at the lowest possible premium. Appropriate for temporary protection, guaranteed renewability, convertibility without evidence of insurance. Prospects are those with limited money that can go to insurance or that need guaranteed renewability with no evidence of insurability. C. Variable universal life- premiums are invested in any way in a variety of investment options. Prospects are those people who desire to treat their life insurance cash policies more as investment accounts than as life insurance policies. D.
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