SOA Exam FAM Sample Question 1.3
Study guide: Exam FAM
A company offers a modern insurance contract that has the following features:
i) A benefit linked to the performance of an investment fund
ii) A guaranteed minimum return on the premiums paid
iii) A guaranteed minimum death benefit payable if the insured dies before the contract matures
iv) A contract term of 7 years
Determine the type of contract offered.
[Question on October 2022 FAM-L Exam]
- A) Term life insurance
- B) Universal life insurance
- C) Variable annuity
- D) Endowment insurance
- E) Reversionary annuity
Answer this question and see the worked solution
Concepts tested
- Guaranteed Minimum Death Benefit
- Guaranteed Minimum Maturity Benefit
- Annuity Contract
- Universal Life Insurance
- Long-Term Insurance Coverage
- Annuities