Chapter Four Exam 1 Type Of Insurance
Policies Xcel Questions With Answers.
P is looking to purchase a life insurance policy that will pay a stated monthly income to
his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that
20 year period. What type of policy should P purchase? - ANSWER- Family
Maintenance Policy
Life insurance that covers an insureds Whole life with level premiums paid over a limited
time is called - ANSWER- Limited pay whole life
Which is true concerning a variable universal life policy - ANSWER- Policy owner
Controls where the investment will go and selects the amount of the premium payment
Which of these life product is not considered interest-sensitive - ANSWER- Modified
whole life
S is covered by a whole life policy. Which insurance product can cover his children? -
ANSWER- Child term rider
All of these are characteristics of an adjustable life policy except - ANSWER- face
amount can be adjusted using policy dividends
What advantage does an equity indexed insurance policy have over a variable life policy
- ANSWER- A minimum guaranteed rate of return
What kind of life insurance product covers children they are parents policy - ANSWER-
A term rider
What kind of life insurance offers the policy owner a cash value that is invested in a
separate account - ANSWER- Variable life
Universal life insurance offers which of these features - ANSWER- Flexible premium
and flexible face amount
A father who dies in three years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waved under which provision - ANSWER- Pay
or provision
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - ANSWER- Family Maintenance Policy
, K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? - ANSWER- Modified Whole Life
A 15-year mortgage is best protected by what kind of life policy? - ANSWER- 15-year
decreasing term
A life insurance policy that fails the 7-pay test is considered to be a modified
endowment contract. This type of policy will. - ANSWER- Lose certain tax advantages
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - ANSWER- 20-Pay Life
accumulates cash value faster than Straight Life
D needs life insurance that provides coverage for only a limited amount of time while
also paying the lowest possible premium. What kind of policy is needed? - ANSWER-
Level term
A modified life policy has similar characteristics and serves the same purpose as -
ANSWER- Graded premium whole life
Which statement is true regarding a variable whole life policy? - ANSWER- A minimum
guaranteed Death benefit is provided
A husband and wife own a life insurance policy with their son named as a beneficiary.
The wife dies first followed by the husband five years later. Their son received the policy
face amount after his father died. What type of policy was owned? - ANSWER-
Survivorship life
A life insurance policy that offers cash value and is influenced by S & P with a
guaranteed minimum rate of return is called - ANSWER- Equity index life
What kind of premium does a Whole Life policy have? - ANSWER- level
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If
G were to die at age 50, how long would G's family receive an income? - ANSWER- 10
years
A life insurance policy that covers multiple insureds Ian pays the face amount following
the death of the last insured is called - ANSWER- A survivorship life
What kind of life insurance policy pays a specified monthly income to a beneficiary for
30 years and then pays a lump sum benefit at the end of that 30 years? - ANSWER-
Family Maintenance Policy
Policies Xcel Questions With Answers.
P is looking to purchase a life insurance policy that will pay a stated monthly income to
his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that
20 year period. What type of policy should P purchase? - ANSWER- Family
Maintenance Policy
Life insurance that covers an insureds Whole life with level premiums paid over a limited
time is called - ANSWER- Limited pay whole life
Which is true concerning a variable universal life policy - ANSWER- Policy owner
Controls where the investment will go and selects the amount of the premium payment
Which of these life product is not considered interest-sensitive - ANSWER- Modified
whole life
S is covered by a whole life policy. Which insurance product can cover his children? -
ANSWER- Child term rider
All of these are characteristics of an adjustable life policy except - ANSWER- face
amount can be adjusted using policy dividends
What advantage does an equity indexed insurance policy have over a variable life policy
- ANSWER- A minimum guaranteed rate of return
What kind of life insurance product covers children they are parents policy - ANSWER-
A term rider
What kind of life insurance offers the policy owner a cash value that is invested in a
separate account - ANSWER- Variable life
Universal life insurance offers which of these features - ANSWER- Flexible premium
and flexible face amount
A father who dies in three years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waved under which provision - ANSWER- Pay
or provision
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - ANSWER- Family Maintenance Policy
, K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? - ANSWER- Modified Whole Life
A 15-year mortgage is best protected by what kind of life policy? - ANSWER- 15-year
decreasing term
A life insurance policy that fails the 7-pay test is considered to be a modified
endowment contract. This type of policy will. - ANSWER- Lose certain tax advantages
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - ANSWER- 20-Pay Life
accumulates cash value faster than Straight Life
D needs life insurance that provides coverage for only a limited amount of time while
also paying the lowest possible premium. What kind of policy is needed? - ANSWER-
Level term
A modified life policy has similar characteristics and serves the same purpose as -
ANSWER- Graded premium whole life
Which statement is true regarding a variable whole life policy? - ANSWER- A minimum
guaranteed Death benefit is provided
A husband and wife own a life insurance policy with their son named as a beneficiary.
The wife dies first followed by the husband five years later. Their son received the policy
face amount after his father died. What type of policy was owned? - ANSWER-
Survivorship life
A life insurance policy that offers cash value and is influenced by S & P with a
guaranteed minimum rate of return is called - ANSWER- Equity index life
What kind of premium does a Whole Life policy have? - ANSWER- level
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If
G were to die at age 50, how long would G's family receive an income? - ANSWER- 10
years
A life insurance policy that covers multiple insureds Ian pays the face amount following
the death of the last insured is called - ANSWER- A survivorship life
What kind of life insurance policy pays a specified monthly income to a beneficiary for
30 years and then pays a lump sum benefit at the end of that 30 years? - ANSWER-
Family Maintenance Policy
