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

The "Reduction of Premium" dividend option allows a policyowner to apply dividends toward paying all or part of the next premium due on their life insurance policy. This option effectively reduces the out-of-pocket premium payment required from the policyowner. If the dividend is equal to or exceeds the premium due, it can cover the entire premium, eliminating the need for the policyowner to make a payment.

Aflexible premium deferred annuity (FPDA)allows the annuitant to makevarying premium paymentsover time. The annuity starts paying out at a future date, making it suitable for retirement savings.

"Flexible premium deferred annuities permit payments of varying amounts over time before annuitization, offering flexibility for savers."

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."