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MPF intermediaries
MPFMPF Intermediaries ExaminationVariable universal life has grown more popular than variable life mainly because of:
Answer: its flexibility. Variable universal life has become more popular than variable life owing to its flexibility.Why not the others:• its guaranteed cash values: Its values follow the linked funds; they are not guaranteed.• its fixed premium payment schedule: A fixed premium schedule describes variable life, the product it has overtaken.• the insurer bearing the investment risk: In linked policies the policyholder bears the investment risk.Watch out: Assuming popularity comes from guarantees; here it comes from flexibility.Rule: Variable universal life has overtaken variable life because of its flexibility.Source: IA Investment-linked Long Term Insurance Examination Study Notes, 2024 Edition (7th ed., Nov 2024; for exams from 17 Feb 2025), 1.1, p. 1/2
Assuming popularity comes from guarantees; here it comes from flexibility.
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