d. Number of units through cancellation of units

Policyholders can take loans against their variable life up to the entire withdrawal value of their policies

Are not guaranteed, Are linked to the performance to of the investment fund managed by the life insurance company by the life insurance company, Fluctuate according to the rise and fall of market prices

The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of the surrender, The life company needs to maintain a separate account for variable life policies distinct from the general account

Misrepresentation is a specific form of twisting

The margin between the bid and offer price is used to cover the managements cost of the policy, The policy value is calculated based on the bid price of units allocated into the policy

Fixed income securities

Investors are exposed to market and specific risks, Shares can become worthless if company becomes insolvent

The premiums and benefits of the endowment policies are described at the inception of the policy whereas variable life are flexible as the are account driven, The benefits and risks of variable life and endowment policies directly accrue to the policyholders

It refers to an agent offering a prospect a special inducement to purchase a policy

Participating whole life

The variable life funds offer policyholders an access to pooled or diversified portfolios , The variable life policyholders can vary his premium payments, take premium holidays, add single premium top – ups and change the level of the sum assured easily

II, I, IV, III

Established by a trust deed which enables a trustee to hold the pool of money and assets in trust in behalf of the investor

Each of the policy owner’s premium will be used to purchase units the number of which is dependent on the selling price of each unit, Purchase of units can only be made from the variable life fund itself, which will then create new units and add investment monies to the value of the fund

Policy owners have access to pooled or diversified portfolios of investment, Policy owners can easily change the level of the premium payments as the product design of variable life policies have clear structures which cater separately for investment and insurance protection, Policy owners can gain access to variable life funds managed by professional investment managers with proven track records

The policy benefits are directly linked to the investment performance of the underlying assets

Because the impact of changes in investment condition on variable life policy is borne solely by the customer.

Rebating is prohibited under the Insurance Code, Rebating deals with offering the prospect a special inducement to purchase a policy

Variable life insurance policies offer investors policies with values and indirectly linked to the investment performance of the life company

Policy owners may buy additional units of the variable life fund and these units will be allocated to new variable life insurance policies

Its withdrawal value and protection benefits are determined by the investment performance of the underlying assets., Its commission and company expenses are met by a variety of explicit charges with normally 6 months notice given by the life companies prior to any change, Its withdrawal value is normally the value of units allocated to the policy owner calculated at the bid price

There is no fixed term in a single premium variable life policy and therefore, they are technically whole life insurance, Top – ups or single premium injections are allowed in these plans

It enables the investor an opportunity for capital appreciation

The withdrawal value is not guaranteed, The volatility of the returns depends on the investment strategy of the fund

Must be issued with a minimum death benefit

Variable policies generally have a longer exposure to equity investment than with participating andother traditional policies, The commissions and company expenses are met by a variety of explicit charges, some of which are variable

The fund ensures definite high yield for an investor since it is managed by professionals who are well – versed in the management of risk of investment portfolios

Policy owners can easily change the level of sum assured and switch their investment between funds, Policy owners can easily take premium holidays and add single premium to Top – ups, Variable life insurance policies offer the potential for higher returns

The investment elements of variable life insurance policies is made known to the policy owner at the outset and is invested in a separately identifiable fund which is made up of units of investment, Variable life insurance policies offer the potential for higher returns, Traditional participating policies aim to produce a steady return by smoothing out market fluctuation

For the purpose of financial planning by the policy owners

The amount of surrender value is usually higher than the amount under non – participating policies and it varies with the age of the assured, being lower at older ages

Policy owners who invest in variable life funds with high equity investment face higher risk but can expect to achieve higher return than the traditional life insurance product over the long term

Php. 401,107.58

Are generally covered by cancellation of units in the fund, Are generally met by explicit charges stipulated openly in the policy terms, Vary with age of policy owner and level of cover

Diversification can completely eliminate the risk of investing in stocks in a portfolio.

It gives shareholders the right to a fixed dividend, Has the priority over company assets during a dissolution, They enjoy benefit of capital appreciation

Are not directly linked to the company’s investment performance, Have already been smoothened by the life company, Do not have the highs and lows of investment return as in good investments years of life company

Extensive investment training by the company, The use of sales plan, where sales goals, strategies, and objectives are coordinated with the market analysis, segmentation and training

Amount invested in cash depends on size of the cashflow requirement

Premium top-ups and holidays, subject to the company’s administrative rules are usually allowed, Life protection is the main objective of the plan with investment as the nominal purpose, Withdrawals after the payment of a few years premium are usually allowed

People invest money in fixed deposits to produce high and guaranteed returns

The policies can be used for investment, as a source of regular savings and protection , The withdrawal values and protection benefits are determined by the investment

The risk of rate of return on the investment not matching up to the individual’s expectation, The risk of losing some or all of a person’s initial investment

Managing the portfolio of investment and administering the buying and selling of shares in the unit trust itself

The administrative expenses of setting uo the variable life insurance policy

The price at which units under the policy are offered for sale by the life company

Reducing the risks of investment by putting one fund under management into several categories of investment

Invest in shares of stocks and investors who buy such assets usually aim for capital appreciation

Variable life products allow policyholders to vary the premium payments unlike participating products., Variable life products can take the form of whole life or endowment policies with Participating products., Variable life products allow policyholders to pay future single premiums from time to time to add more units to his account unlike participating products.

Ps. 33,246.78

It is a flexible premium policy with returns that will vary with the underlying value of investments investments.

Fraud by senior management, Financial leverage of the company

It enables the investor an opportunity for capital apprecition

I, IV, III & II

Higher return normally comes with higher risk, At the top end of the graph are the equity funds, The relatively risk-less cash funds sit at the bottom end of the graph

The policy value of endowment policies is the cash value plus any accumulated dividends less any outstanding loans due at the time of surrender., The life company needs to maintain a separate account for variable life policies distinct From the general account.

The net withdrawal value as of the statement date.