1
XCEL LIFE INSURANCE INDIANA FINAL EXAM
NEWEST 2025 ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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. - (answers)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 - (answers)D. Term Life
All of the following are true statements about the taxation of life insurance
benefits except:
, 2
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. - (answers)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. - (answers)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
, 3
c. Modified Life
d. Family Policy - (answers)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 - (answers)Variable
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 - (answers)A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
, 4
b. The premium
c. The face amount
d. The nonforfeiture values - (answers)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. - (answers)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.
c. Joe will be able to stop paying the premiums at age 50, but his death protection
will run through age 100.
d. At age 50, Joe's cash value will equal the face value of his contract. -
(answers)C. Joe will be able to stop paying the premiums at age 50, but his death
protection will run through age 100.
XCEL LIFE INSURANCE INDIANA FINAL EXAM
NEWEST 2025 ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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. - (answers)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 - (answers)D. Term Life
All of the following are true statements about the taxation of life insurance
benefits except:
, 2
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. - (answers)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. - (answers)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
, 3
c. Modified Life
d. Family Policy - (answers)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 - (answers)Variable
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 - (answers)A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
, 4
b. The premium
c. The face amount
d. The nonforfeiture values - (answers)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. - (answers)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.
c. Joe will be able to stop paying the premiums at age 50, but his death protection
will run through age 100.
d. At age 50, Joe's cash value will equal the face value of his contract. -
(answers)C. Joe will be able to stop paying the premiums at age 50, but his death
protection will run through age 100.
