Variable Life case studies
Variable Life · Put your knowledge to work in context.
The Variable Life credential is a state insurance license line that lets a producer sell life insurance products whose cash values and death benefits are tied to separate account investments, most commonly variable life and variable universal life. It is built for life agents who already hold an ordinary life license and want to move into products that combine insurance guarantees with securities-based subaccounts. The Variable Life case studies are 5 cases and about 3,399 words.
1The Underfunded VUL: Stopping Premiums, Borrowing, and Switching Death Benefit Options
Dana, age 58, owns a 2,000,000 variable universal life policy issued six years ago with a level death benefit (Option A). She has paid 30,000 annually, 180,000 total, and the account value is 205,000 spread across six equity-heavy subaccounts.
688 words, about 3 min2Seminar Marketing, an Unapproved DBA, and Referral Fees for a 79-Year-Old Annuity Buyer
Marcus is a registered representative with a broker-dealer and a licensed life producer. He books a steakhouse dinner seminar for 60 prospects aged 68 to 82 and plans a mailer reading 'Guaranteed lifetime income.
679 words, about 3 min3Withdrawal Before an Exchange and a Loan from a MEC Whole Life Policy
Elena, age 66 and still working, owns a nonqualified deferred variable annuity bought 12 years ago with a 180,000 single premium; it is now worth 260,000 and she has never taken a withdrawal. She wants to withdraw 40,000 to pay off credit-card debt, then 1035 exchange the remaining balance into a new variable annuity with a 7-year surrender charge and a 2% market value adjustment, adding a guaranteed lifetime withdrawal benefit for a 3.1% annual fee.
675 words, about 3 min4Reinstatement, Suicide, and a Concealed Tobacco Habit
A 750,000 universal life policy was issued in March 2019 to Harold, then 47, at a preferred nontobacco rate. He missed premiums and the policy lapsed in January 2023.
660 words, about 3 min5A Lapsed License, a Missing Appointment, and a Forged Delivery Receipt
Priya holds a life insurance producer license in State A and is appointed with Insurer X. She relocated to State B 11 months ago but never applied for a State B license; her State A license lapsed four months ago when she failed to complete 24 hours of continuing education.
697 words, about 3 min