In the course, we discussed the flexibility of a Universal Life policy and the choices that a consumer has in death benefit options (4), mortality charges (level cost of insurance or yearly renewable cost of insurance), and investments. Please refer to the text, presentation slides and other published materials for a review of the key features of Universal Life policies. A client of yours would like your assistance in selecting a Universal Life policy to meet current insurance needs of family protection in the event of an untimely death.

Client Profile

Female, age 35, non-smoker Initial Face Amount: $100,000

Amount she is willing to contribute: $1200 paid at the beginning of each policy year

A conservative investor who believes that an annual investment return of 3% per is reasonable over the long term.

Source of Information You have accessed the illustration software from BMO Insurance Company and secured illustrations of three versions of a Universal Life policy you intend to present to her in your next meeting. These versions are:

1. Level Death Benefit, Yearly Renewable cost of insurance, 3% annual investment return

2. Level death benefit plus Account Value, Yearly Renewable cost of insurance, 3% annual investment return.

3. Level Death Benefit plus Account Value, Level cost of insurance, 3% annual investment return The illustrations summarizing the values of these three versions are presented on Appendix A. You should print these out (3 pages) and refer to them when answering the questions. The Assignment The purpose of the assignment is to test your understanding on how the different choices the client makes on death benefit options and the mortality charges can impact the policy values. You will be asked 10 multiple choice questions about differences in the plans as they relate to death benefit amounts and account values.