CFT – Combat Fitness Test Study Guide, Practice Questions & Exam
Prep
Indexed universal life (IUL) insurance is? - correct answer ✔✔A type of life insurance plan that is
different from whole life and term insurance
What are the differences between Whole Life and IUL? - correct answer ✔✔In general, IUL has
higher growth potential in cash value than Whole Life
Indexed Universal Life (IUL) Insurance is? - correct answer ✔✔A type of life insurance plan that
is different from whole life and term insurance
Which of the following life insurance policies has the lowest policy premium for a certain period
of time up to 30 years? - correct answer ✔✔Term life
Which of the following is a key characteristic of a Universal Life (VUL) policy? - correct answer
✔✔Cash values are guaranteed to grow
Which is NOT true about Variable universal Life (VUL) Insurance? - correct answer ✔✔Cash
values are guaranteed to grow
When a term policy converts into a permanent life policy with the same health rating without
any medical underwriting requirements, the process is known as? - correct answer ✔✔Term
conversion
Which is the best way to determine someone's life insurance needs? - correct answer ✔✔Ask
the client
, What are the different products we can offer to clients? - correct answer ✔✔Term, UL, GUL,
Whole Life, IUL, and Fixed indexed Annuity
What is the main feature(s) of the Equity Indexed concept? - correct answer ✔✔Downside
protection, upside growth potential
Which one is the best strategy selection for IUL? - correct answer ✔✔There's no such thing as
the best strategy because strategy allocation can vary based on individual's risk tolerance and
goals; it's strictly based on suitability
What do the Accelerated Benefits Riders (sometimes known as living benefits) in life insurance
refer to specifically? - correct answer ✔✔Terminal, Chronic, Critical Illness, Critical injury
What is the most important factor(s) to consider when designing an IUL policy for a client? -
correct answer ✔✔The client's affordability, needs, goals, suitability
On the IUL illustration the Guaranteed Values column eventually become zeros after some time,
regardless of the amount and/or duration of the premium. The reason: - correct answer
✔✔This represents the worst-case scenario of interest earned and fees charged, therefore
resulting in lapse of the policy. The is must be fully disclosed to clients at all times
On the IUL illustration, the Current Values column is? - correct answer ✔✔Not guaranteed and
the actual results can be better or worse
Which of the following is true about Option "A" (level) and Option "B" (increasing) of an IUL
policy? - correct answer ✔✔Both Options can be suitable, it really depends on the client's goals,
needs, and affordability, and any other suitability factors.
Let's assume a policy has a $1,000,000 death benefit, Option A (Level). The client has a critical
illness and filed a claim. The company offers the client a full Acceleration payout of $600,000.
The client chooses to accelerate ALL of the offers and therefore receives a check for $600,000.
Prep
Indexed universal life (IUL) insurance is? - correct answer ✔✔A type of life insurance plan that is
different from whole life and term insurance
What are the differences between Whole Life and IUL? - correct answer ✔✔In general, IUL has
higher growth potential in cash value than Whole Life
Indexed Universal Life (IUL) Insurance is? - correct answer ✔✔A type of life insurance plan that
is different from whole life and term insurance
Which of the following life insurance policies has the lowest policy premium for a certain period
of time up to 30 years? - correct answer ✔✔Term life
Which of the following is a key characteristic of a Universal Life (VUL) policy? - correct answer
✔✔Cash values are guaranteed to grow
Which is NOT true about Variable universal Life (VUL) Insurance? - correct answer ✔✔Cash
values are guaranteed to grow
When a term policy converts into a permanent life policy with the same health rating without
any medical underwriting requirements, the process is known as? - correct answer ✔✔Term
conversion
Which is the best way to determine someone's life insurance needs? - correct answer ✔✔Ask
the client
, What are the different products we can offer to clients? - correct answer ✔✔Term, UL, GUL,
Whole Life, IUL, and Fixed indexed Annuity
What is the main feature(s) of the Equity Indexed concept? - correct answer ✔✔Downside
protection, upside growth potential
Which one is the best strategy selection for IUL? - correct answer ✔✔There's no such thing as
the best strategy because strategy allocation can vary based on individual's risk tolerance and
goals; it's strictly based on suitability
What do the Accelerated Benefits Riders (sometimes known as living benefits) in life insurance
refer to specifically? - correct answer ✔✔Terminal, Chronic, Critical Illness, Critical injury
What is the most important factor(s) to consider when designing an IUL policy for a client? -
correct answer ✔✔The client's affordability, needs, goals, suitability
On the IUL illustration the Guaranteed Values column eventually become zeros after some time,
regardless of the amount and/or duration of the premium. The reason: - correct answer
✔✔This represents the worst-case scenario of interest earned and fees charged, therefore
resulting in lapse of the policy. The is must be fully disclosed to clients at all times
On the IUL illustration, the Current Values column is? - correct answer ✔✔Not guaranteed and
the actual results can be better or worse
Which of the following is true about Option "A" (level) and Option "B" (increasing) of an IUL
policy? - correct answer ✔✔Both Options can be suitable, it really depends on the client's goals,
needs, and affordability, and any other suitability factors.
Let's assume a policy has a $1,000,000 death benefit, Option A (Level). The client has a critical
illness and filed a claim. The company offers the client a full Acceleration payout of $600,000.
The client chooses to accelerate ALL of the offers and therefore receives a check for $600,000.
