XCEL LIFE INSURANCE INDIANA FINAL EXAM NEWEST ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT VERIFIED
ANSWERS(DETAILED ANSWERS) ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS!!!
All of the following are true statements about the taxation of life insurance
benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as ordinary
income.
D. The death benefit of a life policy is received by the beneficiary federal income
tax free. - CORRECT ANSWER-A. Policy loans are taxed as ordinary income
Which of the following statements is true about the Group Life conversion
privilege?
a. Death during the conversion period is covered even if the departing employee
chooses NOT to convert to an individual policy.
b. The departing employee must pay the premium if they elect to be covered
during the conversion period.
,c. If a departing employee elects to convert their life insurance, the company
must offer Term insurance as a choice.
d. Under the COBRA laws a departing employee may elect to remain a member of
the Group Life plan for a limited period of time. - CORRECT ANSWER-A. Death
during the conversion period is covered even if the departing employee chooses
NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - CORRECT ANSWER-A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - CORRECT ANSWER-Variable
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
,B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value should
the annuitant die during the accumulation period.
D. It provides for a tax-free death benefit. - CORRECT ANSWER-D. It provides for
a tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of cash
value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - CORRECT ANSWER-D. Term Life
Mary is receiving an annuity payout from her Variable Straight Life Annuity. Upon
her death, which of the following will be payable to her estate?
a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary in
benefits - CORRECT ANSWER-A. Nothing
, What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - CORRECT ANSWER-The Face Amount
Endowment policies can mature in two ways. What are they?
a. The insured dies during the policy period or annuitizes the policy after age
59&1/2.
b. The insured dies during the policy period or reaches the endowment age as
designated in the policy.
c. The insured dies during the policy period or retires at age 59&1/2.
d. The insured dies or reaches age 100. - CORRECT ANSWER-B. The insured dies
during the policy period or reaches the endowment age as designated in the
policy.
At age 30, Joe Insured purchases a 20 Pay Whole Life Policy. Which of the
following statements is true regarding Joe's policy coverage?
a. Joe's death protection will end at age 50.
b. Joe's nonforfeiture values will end at age 50.
EXAM WITH COMPLETE QUESTIONS AND CORRECT VERIFIED
ANSWERS(DETAILED ANSWERS) ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS!!!
All of the following are true statements about the taxation of life insurance
benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as ordinary
income.
D. The death benefit of a life policy is received by the beneficiary federal income
tax free. - CORRECT ANSWER-A. Policy loans are taxed as ordinary income
Which of the following statements is true about the Group Life conversion
privilege?
a. Death during the conversion period is covered even if the departing employee
chooses NOT to convert to an individual policy.
b. The departing employee must pay the premium if they elect to be covered
during the conversion period.
,c. If a departing employee elects to convert their life insurance, the company
must offer Term insurance as a choice.
d. Under the COBRA laws a departing employee may elect to remain a member of
the Group Life plan for a limited period of time. - CORRECT ANSWER-A. Death
during the conversion period is covered even if the departing employee chooses
NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - CORRECT ANSWER-A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - CORRECT ANSWER-Variable
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
,B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value should
the annuitant die during the accumulation period.
D. It provides for a tax-free death benefit. - CORRECT ANSWER-D. It provides for
a tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of cash
value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - CORRECT ANSWER-D. Term Life
Mary is receiving an annuity payout from her Variable Straight Life Annuity. Upon
her death, which of the following will be payable to her estate?
a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary in
benefits - CORRECT ANSWER-A. Nothing
, What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - CORRECT ANSWER-The Face Amount
Endowment policies can mature in two ways. What are they?
a. The insured dies during the policy period or annuitizes the policy after age
59&1/2.
b. The insured dies during the policy period or reaches the endowment age as
designated in the policy.
c. The insured dies during the policy period or retires at age 59&1/2.
d. The insured dies or reaches age 100. - CORRECT ANSWER-B. The insured dies
during the policy period or reaches the endowment age as designated in the
policy.
At age 30, Joe Insured purchases a 20 Pay Whole Life Policy. Which of the
following statements is true regarding Joe's policy coverage?
a. Joe's death protection will end at age 50.
b. Joe's nonforfeiture values will end at age 50.
