CFP FP512 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED
ADB rider (accidental death benefit)
commonly less than the basic death benefit amount
adjustable life
Life insurance which permits changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period.
- encompasses aspects of Universal, Term and whole Life
cash option
cost of living rider
declarations page
decreasing term insurance
deferred annuity
deferred income annuity (DIA)
disability waiver of premium rider
endowment policy
whole life policy where the death benefit and cash surrender value are equal at a
specific date
- on this date the policy is said to have "endowed"
- face amount is paid, and creates an unfavorable tax situation because the amount
received is higher than the policy's basis and is then taxed at ordinary income
equity-indexed annuities (EIAs)
, equity-indexed universal life (EIUL)
- provide a minimum fixed interest rate but also have an index option to ear better
returns
- not variable products but blend the security of a fixed rate with the growth potential of
market-indexed returns
- participation rates and interest rate caps limit how much interest is actually credited to
the policy
fifth dividend option
first-to-die
fixed annuities
grace periods
graded premium life
designed to ease people into whole life premium level payments
- the payments increase over time until they reach the whole life level
guaranteed insurability option
guaranteed lifetime withdrawal benefit (GLWB)
guaranteed minimum accumulation benefit (GMAB)
guaranteed minimum income benefit (GMIB)
guaranteed minimum withdrawal benefit (GMWB)
joint and survivor
life income option
low-load life insurance
SOLUTIONS VERIFIED
ADB rider (accidental death benefit)
commonly less than the basic death benefit amount
adjustable life
Life insurance which permits changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period.
- encompasses aspects of Universal, Term and whole Life
cash option
cost of living rider
declarations page
decreasing term insurance
deferred annuity
deferred income annuity (DIA)
disability waiver of premium rider
endowment policy
whole life policy where the death benefit and cash surrender value are equal at a
specific date
- on this date the policy is said to have "endowed"
- face amount is paid, and creates an unfavorable tax situation because the amount
received is higher than the policy's basis and is then taxed at ordinary income
equity-indexed annuities (EIAs)
, equity-indexed universal life (EIUL)
- provide a minimum fixed interest rate but also have an index option to ear better
returns
- not variable products but blend the security of a fixed rate with the growth potential of
market-indexed returns
- participation rates and interest rate caps limit how much interest is actually credited to
the policy
fifth dividend option
first-to-die
fixed annuities
grace periods
graded premium life
designed to ease people into whole life premium level payments
- the payments increase over time until they reach the whole life level
guaranteed insurability option
guaranteed lifetime withdrawal benefit (GLWB)
guaranteed minimum accumulation benefit (GMAB)
guaranteed minimum income benefit (GMIB)
guaranteed minimum withdrawal benefit (GMWB)
joint and survivor
life income option
low-load life insurance
