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!!!
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. -
✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..D. Term Life
,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. - ✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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. -
✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..C. Joe will be able to stop
NEWEST ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED
ANSWERS(DETAILED ANSWERS) ALREADY GRADED
A+ 100% GUARANTEED TO PASS CONCEPTS!!!
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. -
✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..D. Term Life
,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. - ✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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 - ✔✔ANSW✔✔..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. -
✔✔ANSW✔✔..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. - ✔✔ANSW✔✔..C. Joe will be able to stop
