Insurance Commission (IC) Variable Life Licensing Practice Exam 2025 - Free Variable Life Licensing Practice Questions and Study Guide

In the context of variable life insurance policies, the information that is not required to be disclosed to policyholders is the net withdrawal value as of the statement date.

Variable life insurance policies have specific disclosure requirements to ensure that policyholders are well-informed about their investments and associated costs. For instance, policyholders must be informed about the expected performance of the underlying investments, including risks and historical performance, as this helps them make educated decisions regarding their investment choices. Similarly, fees and charges associated with the policy, such as mortality and expense risk charges, are mandated disclosures to provide transparency about the costs impacting the policy's cash value and investment returns.

While understanding the death benefit amount at full policy surrender is important, it specifically pertains to a policyholder's rights upon surrendering the policy. However, stating the net withdrawal value as of a particular date is not a standard requirement; this can fluctuate based on various factors, such as investment performance and charges incurred. Therefore, while it's helpful information, it is not one of the required disclosures under variable life policy regulations.