Question
Carol, age 65, submitted an application and first premium for an individual variable life insurance policy but did not specify where her initial premium was to be invested. To what would the premiums be allocated
Answers
GPT-4o mini
In the case of an individual variable life insurance policy where the policyholder (in this case, Carol) does not specify how to allocate the premiums, the insurer typically has predefined default investment options. The premiums are generally allocated to a default investment option or fund predetermined by the insurance company. This default option is often a money market fund or a similar conservative investment until the policyholder provides specific investment choices.
It's important for Carol to review her policy documents or speak with her insurance agent to find out what the default allocation is and to understand her investment options. She should also make sure to provide her investment preferences as soon as possible to align her policy with her financial goals.
It's important for Carol to review her policy documents or speak with her insurance agent to find out what the default allocation is and to understand her investment options. She should also make sure to provide her investment preferences as soon as possible to align her policy with her financial goals.