VUL/ULP MOCK EXAMS Questions with Correct Answers (Grade
A+)
Question 1: People generally invest their money to provide: I. An improvement in their financial
position II. A less comfortable standard of living III. Retirement income IV. Funds for paying necessary
expenses and taxes when the person dies
A. I,II and III
B. I, III and IV
C. I, II, and IV
D. II, III and IV
Answer: B. I, III and IV
Question 2: Which of the following funds is comprised of a higher proportion of equity and a lower
proportion of fixed-income instruments?
A. Bond Funds
B. Cash Funds
C. Managed Funds
D. Mixed Funds
Answer: C. Managed Funds
Question 3: Which of the following are the main characteristics 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 and includes interests.
A. I only
B. II only
C. I and II only
D. I, II and III
Answer: C. I and II only
Page 1
,Question 4: Which of the following statements are FALSE? I. The policyowners 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 policyowners 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.
A. I and II only
B. I and III only
C. II and III only
D. All of the above
Answer: B. I and III only
Question 5: Which of the following statements about the feature of Regular Premium Variable Life
Policy are TRUE? I. Top-ups are usually allowed. II. The level of cover can be varied. III. Premium
holidays are usually allowed.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
Answer: D. I, II and III
Question 6: Which one of the following statements is NOT TRUE about the benefits of investing in a
Variable Life insurance policy?
A. The fund provides a highly diversified portfolio, thus, lowering the risk of investment.
B. The fund relieves the investor from the hassles of administering his/her investment.
C. The fund ensures definite high yield for an investor since it is managed by professionals who are well-versed
in the management of risk of the investment portfolio.
D. The fund enables small investors to participate in a pool of diversified portfolios in which he/she is unlikely
to have access to with low investment capital.
Answer: C. The fund ensures definite high yield for an investor since it is managed by professionals who are
well-versed in the management of risk of the investment portfolio.
Page 2
, Question 7: Which of the following statements describes the difference between Variable Life insurance
products and traditional participating products? I. Variable Life insurance products allow
policyowners to change the premium payments but traditional participating life products do not. II.
Variable Life insurance products can take the form of Whole Life or Endowment policies but
Traditional Life policies cannot. III. Variable Life insurance products allow the policyowners to pay
future single premiums from time to time to add more units to his account but Traditional Life
participating products do not.
A. I only
B. I and III only
C. II and III only
D. I, II and III
Answer: B. I and III only
Question 8: 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
A. II only
B. III only
C. I and II only
D. I, II and III
Answer: C. I and II only
Question 9: Which of the following statements about Single Premium Variable Life policies are TRUE?
I. There is no fixed term in a Single Premium Variable Life policy and therefore, it is technically Whole
Life insurance. II. Top-ups or single premium injections are allowed. III. Policyowners have the
flexibility of varying the life coverage.
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: C. II and III
Page 3
A+)
Question 1: People generally invest their money to provide: I. An improvement in their financial
position II. A less comfortable standard of living III. Retirement income IV. Funds for paying necessary
expenses and taxes when the person dies
A. I,II and III
B. I, III and IV
C. I, II, and IV
D. II, III and IV
Answer: B. I, III and IV
Question 2: Which of the following funds is comprised of a higher proportion of equity and a lower
proportion of fixed-income instruments?
A. Bond Funds
B. Cash Funds
C. Managed Funds
D. Mixed Funds
Answer: C. Managed Funds
Question 3: Which of the following are the main characteristics 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 and includes interests.
A. I only
B. II only
C. I and II only
D. I, II and III
Answer: C. I and II only
Page 1
,Question 4: Which of the following statements are FALSE? I. The policyowners 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 policyowners 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.
A. I and II only
B. I and III only
C. II and III only
D. All of the above
Answer: B. I and III only
Question 5: Which of the following statements about the feature of Regular Premium Variable Life
Policy are TRUE? I. Top-ups are usually allowed. II. The level of cover can be varied. III. Premium
holidays are usually allowed.
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
Answer: D. I, II and III
Question 6: Which one of the following statements is NOT TRUE about the benefits of investing in a
Variable Life insurance policy?
A. The fund provides a highly diversified portfolio, thus, lowering the risk of investment.
B. The fund relieves the investor from the hassles of administering his/her investment.
C. The fund ensures definite high yield for an investor since it is managed by professionals who are well-versed
in the management of risk of the investment portfolio.
D. The fund enables small investors to participate in a pool of diversified portfolios in which he/she is unlikely
to have access to with low investment capital.
Answer: C. The fund ensures definite high yield for an investor since it is managed by professionals who are
well-versed in the management of risk of the investment portfolio.
Page 2
, Question 7: Which of the following statements describes the difference between Variable Life insurance
products and traditional participating products? I. Variable Life insurance products allow
policyowners to change the premium payments but traditional participating life products do not. II.
Variable Life insurance products can take the form of Whole Life or Endowment policies but
Traditional Life policies cannot. III. Variable Life insurance products allow the policyowners to pay
future single premiums from time to time to add more units to his account but Traditional Life
participating products do not.
A. I only
B. I and III only
C. II and III only
D. I, II and III
Answer: B. I and III only
Question 8: 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
A. II only
B. III only
C. I and II only
D. I, II and III
Answer: C. I and II only
Question 9: Which of the following statements about Single Premium Variable Life policies are TRUE?
I. There is no fixed term in a Single Premium Variable Life policy and therefore, it is technically Whole
Life insurance. II. Top-ups or single premium injections are allowed. III. Policyowners have the
flexibility of varying the life coverage.
A. I and II
B. I and III
C. II and III
D. I, II, and III
Answer: C. II and III
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