HLLQP - LIFE 04 FC - Universal Life Insurance questions with correct answers

If an additional life-insured is being added to an existing UL policy, will evidence of insurability be required? HLLQP - LIFE 04 FC Answer Yes! Universal life is the only policy type that makes it as possible to change the life-insured or even add an additional life-insured. however, such a change would be a new risk for the insurer and would need to be underwritten. Note: Changing or adding a life-insured is not allowable on a whole life policy! Of the three types of permanent life insurance, which would likely have the highest administrative expenses? HLLQP - LIFE 04 FC Answer Universal life (UL). Universal life (UL) offers the most flexibility, but this comes with the trade-off of higher administrative expenses. Of the four death benefit calculation methods for UL policies, which is the least expensive option for policyholders? HLLQP - LIFE 04 FC Answer The Level death benefit method is the least expensive option for policyholders because it results in a smaller death benefit. The four death benefit calculation methods for UL policies are: 1. Level death benefit