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Presuming all charges are deducted by canceling units and that the Bid Price increases by 8%, what
is the withdrawal value after a year?
a. 432,000
b. 420,069.02
c. 401,107.58
d. 412,500
2. Which statements are FALSE regarding the difference between endowment policies and variable life
policies?
I. The benefits and risks of endowment and variable life policies directly accrue to the
policyholders.
II. The premiums and benefits of the endowment policies are stated at its inception while those of
variable life policies are flexible as they are account driven.
III. Their policy values directly reflect the performance of the fund of the life company.
A. I & II
B. I & III
C. II & III
D. I, II & III
A. Investment in cash increases when there is a bull run in the stock market.
B. Investment in cash decreases when there is a rise in interest rates.
C. Amount invested in cash is dependent on the size of the cash flow requirement.
D. Its yield potential is high.