A Variable Life policy includes which premium structure?

A Variable Life policy includes which premium structure?

• A. Fixed, level premium
• B. Flexible premium
• C. Increasing premium over time
• D. No premium required

Answer: (A)

Variable Life uses a fixed, level premium structure. The policy requires payments of the same amount each period, while the cash value and the death benefit can vary based on how the funds in the separate accounts perform. Flexible premiums are a feature of Universal Life or Variable Universal Life, not traditional Variable Life. Increasing premiums over time aren’t standard for Variable Life, and no premium would leave the policy unpaid and at risk of lapse. Therefore, the premium remains fixed and level.

Variable Life uses a fixed, level premium structure. The policy requires payments of the same amount each period, while the cash value and the death benefit can vary based on how the funds in the separate accounts perform. Flexible premiums are a feature of Universal Life or Variable Universal Life, not traditional Variable Life. Increasing premiums over time aren’t standard for Variable Life, and no premium would leave the policy unpaid and at risk of lapse. Therefore, the premium remains fixed and level.