Life & Health Insurance Exam Colorado
MENTAL HEALTH JURISPUDENCE EXAM
LATEST 2024 ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS|ALREADY
GRADED A+|GUARANTEED TO PASS CONCEPTS
Traditional Whole Life - ✔✔ANSWER✔✔-Ordinary (Straight) Life
-Limited-Pay & Single-Premium Whole Life
-Adjustable Whole Life
-May only convert to more expensive option
-Cannot convert to term
-Cannot convert to more coverage than you have
Return of Premium under Term - ✔✔ANSWER✔✔The premium
for a return of premium policy is generally more than that for a
term policy, but less than that of a traditional whole life policy
,General Features of Annuities - ✔✔ANSWER✔✔-Always have
beneficiary during the pay-in or accumulation period
-May or may not have a beneficiary during the pay-out or
annuity period
-During pay-out period all Pmt's are for the life of the annuitant
-Long-term investments subject to 10% early withdrawal
penalties on withdrawals taken prior to 59.5
-Immediate annuities have no pay-in or accumulation period--
single premium
-Variable annuities use a separate account (Like Mutual fund)
-Have 30-day grace period
Annuity Pay-Out Options - ✔✔ANSWER✔✔-Contractual; cannot
be changed once selected
-Amount received in excess of cost are taxable as ordinary
income
-For life
-Cash surrender under age 59.5 subject to IRS 10% penalty
-Non-qualified=Funded with after tax dollars
Ordinary (Straight) Life - ✔✔ANSWER✔✔-Until 100 or Death,
whichever comes first
,-Permanent Protection
-Rates & benefits based on law of large numbers (Mortality
Rate)
-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash value goes
up
-Insurer keeps the cash value if death to offset risk
-Lowest net cost in long run
-Client has access to cash through cash surrender or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy maturity
Limited-Pay & Single-Premium Whole Life - ✔✔ANSWER✔✔-
Premium paying period is shorter
-Cash value still equals face amount at age 100
-20 pay life will be paid up in 20 years PL
-Life Paid up at age 65, will be paid up at 65 LP
-A single premium policy will have an immediate cash value (1-
pay life)---TEST
, Adjustable Whole Life----TEST - ✔✔ANSWER✔✔-Sold to clients
with fluctuating incomes----TEST
-Combination of term and whole life----TEST
-Coverage may not be increased without physical exam---TEST
Interest/Market Sensitive Whole Life Products -
✔✔ANSWER✔✔-Universal Whole life
-Variable Whole life
-Variable/Universal Whole life
-Equity-Indexed Life
Universal Whole life - ✔✔ANSWER✔✔-Guaranteed minimum
interest rates
-Extreme flexibility regarding premium PMTs----TEST
-Most flexible product
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount + cash value
Variable Whole life - ✔✔ANSWER✔✔-Cash value deposited into
a separate account
MENTAL HEALTH JURISPUDENCE EXAM
LATEST 2024 ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS|ALREADY
GRADED A+|GUARANTEED TO PASS CONCEPTS
Traditional Whole Life - ✔✔ANSWER✔✔-Ordinary (Straight) Life
-Limited-Pay & Single-Premium Whole Life
-Adjustable Whole Life
-May only convert to more expensive option
-Cannot convert to term
-Cannot convert to more coverage than you have
Return of Premium under Term - ✔✔ANSWER✔✔The premium
for a return of premium policy is generally more than that for a
term policy, but less than that of a traditional whole life policy
,General Features of Annuities - ✔✔ANSWER✔✔-Always have
beneficiary during the pay-in or accumulation period
-May or may not have a beneficiary during the pay-out or
annuity period
-During pay-out period all Pmt's are for the life of the annuitant
-Long-term investments subject to 10% early withdrawal
penalties on withdrawals taken prior to 59.5
-Immediate annuities have no pay-in or accumulation period--
single premium
-Variable annuities use a separate account (Like Mutual fund)
-Have 30-day grace period
Annuity Pay-Out Options - ✔✔ANSWER✔✔-Contractual; cannot
be changed once selected
-Amount received in excess of cost are taxable as ordinary
income
-For life
-Cash surrender under age 59.5 subject to IRS 10% penalty
-Non-qualified=Funded with after tax dollars
Ordinary (Straight) Life - ✔✔ANSWER✔✔-Until 100 or Death,
whichever comes first
,-Permanent Protection
-Rates & benefits based on law of large numbers (Mortality
Rate)
-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash value goes
up
-Insurer keeps the cash value if death to offset risk
-Lowest net cost in long run
-Client has access to cash through cash surrender or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy maturity
Limited-Pay & Single-Premium Whole Life - ✔✔ANSWER✔✔-
Premium paying period is shorter
-Cash value still equals face amount at age 100
-20 pay life will be paid up in 20 years PL
-Life Paid up at age 65, will be paid up at 65 LP
-A single premium policy will have an immediate cash value (1-
pay life)---TEST
, Adjustable Whole Life----TEST - ✔✔ANSWER✔✔-Sold to clients
with fluctuating incomes----TEST
-Combination of term and whole life----TEST
-Coverage may not be increased without physical exam---TEST
Interest/Market Sensitive Whole Life Products -
✔✔ANSWER✔✔-Universal Whole life
-Variable Whole life
-Variable/Universal Whole life
-Equity-Indexed Life
Universal Whole life - ✔✔ANSWER✔✔-Guaranteed minimum
interest rates
-Extreme flexibility regarding premium PMTs----TEST
-Most flexible product
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount + cash value
Variable Whole life - ✔✔ANSWER✔✔-Cash value deposited into
a separate account
