OH-Life-Agent-Series-11-44 Exam Dumps : OHIO Life Insurance Agent Series 11-44

A Variable Universal Life (VUL) policy is a type of permanent life insurance that combines the flexible premium and adjustable death benefit features of universal life insurance with the investment options of variable life insurance. Policyholders can allocate a portion of their premium payments to a variety of investment options, such as stocks and bonds, allowing for potential growth of the policy's cash value. However, this also introduces investment risk, as the cash value and death benefit can fluctuate based on market performance.

According to the Ohio Life Insurance Study Guide:

"Variable universal life insurance combines the features of universal life insurance with investment options, allowing policyholders to invest the cash value in various separate accounts."

An irrevocable beneficiary has a vested interest in the life insurance policy. This means that the policyowner cannot change the beneficiary designation, take loans, or surrender the policy without the written consent of the irrevocable beneficiary. This designation provides strong protection for the beneficiary’s interest.

In Ohio, when a life insurance application is submitted without the initial premium payment (i.e., not prepaid), the coverage does not become effective immediately. Instead, the policy becomes effective on the date the policy is delivered to the applicant and the first premium is paid, provided the applicant's health status remains unchanged. This ensures that the insurer has received both the necessary payment and confirmation of the applicant's insurability before coverage begins.

According to the Ohio Life Insurance Study Guide:

"If the initial premium is not paid with the application, coverage becomes effective upon delivery of the policy and payment of the first premium, assuming the applicant's health has not changed."