Ohio Life Insurance Practice exam

The statement that premium payments must be made for the life of the contract accurately reflects a key characteristic of variable life insurance. This type of policy is designed to provide lifelong coverage as long as the required premiums are paid. Unlike term insurance, which offers coverage for a specific period, variable life insurance remains in force as long as premiums are maintained, ensuring that the policyholder has long-term protection.

In variable life insurance, premium payments are typically structured to provide a death benefit while also allowing the cash value to be invested in a variety of investment options. While premium payments can be flexible and vary somewhat based on the policyholder’s financial situation, they are ultimately required for the life of the contract to keep the coverage intact.

Other statements regarding this topic do not accurately capture the nature of variable life insurance. For example, while gains can depend on the performance of investments, they are not guaranteed, which is contrary to the assertion made in another option. Additionally, while policy loans may be available under variable life insurance, there are standard restrictions and terms that apply, meaning they cannot be taken freely without conditions.