Which of the following statements about the features

64. Which of the following statements about the features of Regular Premium Variable Life policies are TRUE?
I. Top-ups are usually allowed.
II. The level of cover can be varied.
III. Premium holidays are usually allowed.
A. I & II only
B. I & III only
C. II & III only
D. I, II & III
65. Which of the following is/are the main characteristic(s) of Variable Life insurance policies?
I. The policies can be used for investments, as a source of regular savings and protection.
II. The withdrawal and protection benefit are determined by the investment performance of the underlying assets.
III. The net withdrawal values of the policies are the gross withdrawal values shown in the policy which includes cash
dividends up to the date of surrender, less all indebtedness, includes interest.
66. What is/are the disadvantage(s) of investing in cash and deposits?
I. The safest type of investment
II. They provide the lowest return
III. There is reinvestment risk.
67. Which of the following funds comprise a higher proportion of equity and a lower proportion of fixed income
instruments?
68. Your client is a 35 year-old male, earning P35,000 a month, has savings, and with moderate risk tolerance. What
product would you recommend?
A. Participating whole life
B. Endowment
C. Term
D. Variable life

69. Which of the following statements are FALSE?
I. The policyholders may request a partial withdrawal of the policy and the amount will be met by cashing the units at
the offer price.
II. The structure of charges and the investment content of a Variable life policy are specified in the policy document and
the policy statement.
III. Some Variable Life policies grant loans to policyholders which is limited to a percentage of the cash value.
IV. Commissions and office expenses are met by a variety of implicit charges, some of which are variable.
70. Which of the following are some of the flexibility features of Variable life insurance policies?
I. Partial Withdrawal
II. Variation in sum assured
III. Guaranteed withdrawal values
71. Which of the following statements describes the difference between variable life products and participating
products?
I. Variable life products allow policyholders to pay top-up premiums from time to time to buy more units for his
account unlike traditional participating life policies.
II. Variable life products allow policyholders to take premium holiday unlike traditional participating life products.
III. Variable life products can take the form of whole life or endowment policies unlike traditional participating life
products.