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This sounds like a question on a continuing education test. That said, there are 2 types of life insurance that rely on an investment component. The most common thought of would be variable life which uses stocks to increase or decrease the cash value, The other type uses 1 or more indexes which capture gains, usually with a cap on earnings within a given year.

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8y ago
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8y ago

Market oriented Ulip policies are considered riskier in comparison to endowment policies, as without proper switching over to safer bonds as the situation demands, your return may be lesser than your investment.

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Q: Which type of life insurance is considered to be more risky based on its investment component?
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