Insurance Commission (IC) Variable Life Licensing Practice Exam

Reviewing investment choices in a Variable Life Insurance policy is vital for ensuring that the policyholder's financial goals align with their current situation and the performance of their investments. Regular reviews allow policyholders to adjust their selections in response to significant life events, such as marriage, having children, changing jobs, or nearing retirement.

These life events often herald a shift in financial priorities or risk tolerance, making it essential to reassess investment strategies. Additionally, regular reviews can help investors respond to fluctuations in the economy or changes in the performance of underlying investment options, ultimately leading to more informed decision-making regarding their policy. This proactive approach can optimize growth potential, manage risks effectively, and ensure the policy remains a suitable tool for achieving the policyholder's long-term financial objectives.

In contrast, not reviewing choices might lead to outdated strategies that do not account for the individual's evolving circumstances or market conditions, limiting the effectiveness of the Variable Life Insurance policy.