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1. The following statements are about variable life insurance. Select the answer choice containing the correct statement.
The insurance company alone assumes the investment risk for variable life insurance policies.
Variable life insurance policies offer policyowners guaranteed investment earnings and minimum cash values.
Assets representing policy reserves of variable life insurance policies are placed in investment accounts that are kept separate from the insurance company’s general investment account.
The death benefit provided by a variable life insurance policy remains constant throughout the life of the policy.
2. The purchase of term insurance is justified by which of the following circumstances?
I. Income is limited.
II. The insured wants to guarantee future insurability.
I only
Neither I nor II
II only
Both I and II
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