Question

Which of the following statements about Equity Indexed Life insurance is TRUE?

Answer 1

Answer:

C. The interest credited to the policy is based off of the performance of a stock market index like the S&P 500

Explanation:

 

The appeal of this strategy is that the interest credit will theoretically be greater than what the general account of a traditional insurer will pay by linking the potential interest credit to a stock market index. Based on the policy's design, there is no negative impact on existing cash values if the index falls in value.