Megan owns a universal life (UL) policy with guaranteed mortality rates. The illustration provided indicates...
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Megan owns a universal life (UL) policy with guaranteed mortality rates. The illustration provided indicates that, if she continues paying her planned premiums for 20 years, and if the returns are at 6%, her policy will be paid-up, and she will not have to pay premiums after 20 years. Which of the following is/are true with respect to the universal life policy?
| A. | Megan has to pay premiums for only 20 years, irrespective of the returns earned in the investment account
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| B. | A & B
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| C. | The return of 6% on the investment is guaranteed by the insurer.
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| D. | If Megan receives a return of less than 6%, she may have to continue premium payments beyond 20 years.
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