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MPF intermediaries
MPFMPF Intermediaries ExaminationVariable universal life combines the investment features of variable life with which features of universal life?
Answer: flexible premiums and death benefits, and unbundled pricing factors. It joins universal life's flexibility in premiums and death benefit, and its unbundling of pricing factors, to the investment features of variable life.Why not the others:• a level premium payable for a fixed term only: A level premium for a fixed term is not the flexibility that universal life brings.• guaranteed reversionary bonuses added each year: Reversionary bonuses are a with-profits feature, not a universal life feature combined here.• a guaranteed cash value together with a fixed premium payment schedule: A fixed premium schedule belongs to fixed premium variable life; guaranteed cash values belong to traditional policies.Watch out: Choosing 'fixed premium' features for a product whose whole point is flexibility.Rule: Variable universal life = universal life's premium and death benefit flexibility and unbundled pricing + variable life's investment features.Source: IA Investment-linked Long Term Insurance Examination Study Notes, 2024 Edition (7th ed., Nov 2024; for exams from 17 Feb 2025), 1.1(b), p. 1/2
Choosing 'fixed premium' features for a product whose whole point is flexibility.
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