72. An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice of how the cash value will be invested. The insured should purchase
Answer: C
The insured should purchase a variable universal life policy.
A variable universal life policy offers the insured flexibility in premium payments, a death benefit, and the ability to choose how the cash value is invested, making it the ideal choice for the insured's needs.
A) adjustable life.
Adjustable life policies do provide some flexibility in premiums and death benefits; however, they typically do not allow the policyholder to choose the investment options for the cash value. Therefore, this option does not fully meet the insured's requirements.
B) universal term life.
Universal term life policies focus on providing a death benefit with level premiums for a specified term, but they do not accumulate cash value or offer investment choices. Consequently, this option fails to satisfy the insured's desire for cash value investment flexibility.
C) variable universal life.
Variable universal life policies encompass all the desired elements: they feature flexible premium payments, provide a death benefit, and allow the policyholder to select from various investment options for the cash value. This option perfectly aligns with the insured's requirements.
D) graded premium whole life.
Graded premium whole life policies offer a death benefit and a guaranteed cash value but do not provide flexibility in premium payments or investment choices for the cash value. Thus, this option does not fulfill the insured's specifications.
Conclusion
Variable universal life policies are the only option that incorporates all three critical elements requested by the insured: flexible premium payments, a death benefit, and investment choice for cash value. Other options either lack one or more of these features or do not align with the insured's specific needs.