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CFP® Practice Question: Disadvantages of Universal Life Insurance

Which of the following statements concerning the disadvantages of universal life insurance is (are) correct?

(1)   The future yield potential for the policy owner is uncertain.

(2)   The semi-compulsory regular savings feature of conventional whole life insurance is lost.

(3)   Since the cash value is invested primarily in common stocks and other equities, it is exposed to all the risks of such investments.

 

A.  (1) only

B.  (1) and (2) only

C.  (1) and (3) only

D.  (2) and (3) only

E.  (1), (2), and (3)