Life Insurance FundamentalsQuestion 127 of 315
Which best describes the death benefit under Universal Life Option B (Type II)?
a.Equal to cash value only, with no face amount
b.Equal to the face amount PLUS the accumulated cash value
c.Equal to twice the face amount at all times
d.Equal to face amount only, regardless of cash value
Explanation
Option B (Type II) pays the face amount plus the accumulated cash value, so the death benefit grows over time. Because the net amount at risk does not decline, Option B is more expensive than Option A.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)