Which of the following statements about indexed universal life insurance is true?

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Which of the following statements about indexed universal life insurance is true?

A) It is another name for variable life insurance.

B) Although a minimum interest rate is guaranteed, the rate credited can be higher if a specified stock index performs well.

C) The cash value is usually credited with 100 percent of the return on the equity index, including dividends paid on the stocks in the index.

D) The formula used to determine the additional interest credited to the policy places no limit on the additional interest that can be credited.

Answer: B) Although a minimum interest rate is guaranteed, the rate credited can be higher if a specified stock index performs well.

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