XCEL LIFE POLICIES EXAM QUESTIONS WITH COMPLETE
SOLUTIONS VERIFIED GRADED A+
Which type of multiple protection policy pays on the death of the last person?
A. Joint Life Policy
B. Dual Life Policy
C. Multiple Life Policy
D. Survivorship Life Policy
D. Survivorship Life Policy
A policyowner may change two policy features on what type of life insurance?
A. Adjustable Life
B. Modified Whole Life
C. Decreasing Term Life
D. Whole Life
A. Adjustable Life
Adjustable Life allows the policyowner to change two policy features: premium and face
amount.
,A single premium cash value policy can be described as
A. A policy that is guaranteed issue
B. A policy that is paid up after only one payment
C. A policy that covers two or more lives
D. A policy that only requires an annual payment
B. A policy that is paid up after only one payment
A single premium cash value policy is best described as a policy that is paid up after
only one payment
Which of these would be the best example of a limited pay life insurance policy?
A. Term life policy with premiums paid up after 20 years
B. Term life policy that returns cash value after 20 years
C. Whole life policy that pays out its cash value over a 20 year period
D. Whole life policy with premiums paid up after 20 years
D. Whole life policy with premiums paid up after 20 years
A whole life insurance policy where the premiums are paid up after 20 years would be
considered a limited pay life insurance policy
A permanent life insurance policy where the policy owner pays premiums for a
specified number of years is called a(n)
, A. Adjustable policy
B. Variable Universal Policy
C. Limited Pay Policy
D. Level Term Policy
C. Limited Pay Policy
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a limited pay policy.
Under a Modified Endowment Contract, what are the likely tax consequences?
A. Pre-death distributions will become taxable
B. Premium payments are tax deductible
C. Interest on policy loans is tax deductible
C. Cash value cannot be surrendered early
A. Pre-death distributions will become taxable
The tax consequence of a modified endowment contract is pre-death distributions are
likely to become taxable.
A limited payment whole life policy provides
A. Lifetime protection
B. Discounted Premiums
SOLUTIONS VERIFIED GRADED A+
Which type of multiple protection policy pays on the death of the last person?
A. Joint Life Policy
B. Dual Life Policy
C. Multiple Life Policy
D. Survivorship Life Policy
D. Survivorship Life Policy
A policyowner may change two policy features on what type of life insurance?
A. Adjustable Life
B. Modified Whole Life
C. Decreasing Term Life
D. Whole Life
A. Adjustable Life
Adjustable Life allows the policyowner to change two policy features: premium and face
amount.
,A single premium cash value policy can be described as
A. A policy that is guaranteed issue
B. A policy that is paid up after only one payment
C. A policy that covers two or more lives
D. A policy that only requires an annual payment
B. A policy that is paid up after only one payment
A single premium cash value policy is best described as a policy that is paid up after
only one payment
Which of these would be the best example of a limited pay life insurance policy?
A. Term life policy with premiums paid up after 20 years
B. Term life policy that returns cash value after 20 years
C. Whole life policy that pays out its cash value over a 20 year period
D. Whole life policy with premiums paid up after 20 years
D. Whole life policy with premiums paid up after 20 years
A whole life insurance policy where the premiums are paid up after 20 years would be
considered a limited pay life insurance policy
A permanent life insurance policy where the policy owner pays premiums for a
specified number of years is called a(n)
, A. Adjustable policy
B. Variable Universal Policy
C. Limited Pay Policy
D. Level Term Policy
C. Limited Pay Policy
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a limited pay policy.
Under a Modified Endowment Contract, what are the likely tax consequences?
A. Pre-death distributions will become taxable
B. Premium payments are tax deductible
C. Interest on policy loans is tax deductible
C. Cash value cannot be surrendered early
A. Pre-death distributions will become taxable
The tax consequence of a modified endowment contract is pre-death distributions are
likely to become taxable.
A limited payment whole life policy provides
A. Lifetime protection
B. Discounted Premiums
