PSI Ohio Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Ohio Insurance Test. Prepare with flashcards and multiple choice questions, each question accompanied by hints and explanations. Excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is typically a feature of variable life insurance products?

Fixed death benefit only
No cash value development
Investment options in separate accounts
Guaranteed premiums for life

The correct answer is: Investment options in separate accounts

Variable life insurance products are distinct in that they offer policyholders a variety of investment options through separate accounts. This feature allows policyholders to allocate their premium payments among various investment vehicles, such as stocks and bonds, which can lead to varying cash values and death benefits depending on the performance of these investments. Unlike traditional life insurance products that provide a fixed return or a guaranteed payout, variable life insurance enables individuals to assume more control and potential for higher rewards, albeit with increased risk associated with market fluctuations. The structure of variable life insurance is designed to provide flexibility, making it an attractive choice for those looking to combine life insurance protection with investment growth potential.