Arizona Life Insurance Actual Exam 2
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Questions with 100% Correct Detailed
Verified Answers Already Graded A+ latest
update 2025
what happens when a policy owner borrows against the cash value of
his life insurance policy
the policy proceeds would be reduced by the outstanding loan balance
no additional loans can be taken out in the future
the amount borrowed is added to the policy owners gross income for
tax purposes
the interest on the loan is tax deductible --- correct answer ---the
policy proceeds would be reduced by the outstanding loan balance
,straight whole life insurance can be accurately described in all of
these statements EXCEPT
policy protection normally expires at age 65
nonforfeiture values are available to the policy owner
provides level protection with level premiums
cash value loans are permitted --- correct answer ---policy protection
normally expires at age 65
which statement regarding the joint and survivor life insurance
settlement options is NOT true
age of beneficiaries plays a factor when determining the payment
amounts
income continues until the last beneficiary dies
two or more beneficiaries can be paid
,the amount of each installment is larger than the single life income
option --- correct answer ---the amount of each installment is larger
than the single life income option
which statement regarding universal life insurance in correct
cash value accumulations have a guaranteed minimum interest rate
policy owner can change the face amount but not the premium
policy owner can change the premium but not the face amount
partial withdrawals cannot be made from the policy`s cash value ---
correct answer ---cash value accumulations have a guaranteed
minimum interest rate
which of the following statements about universal life insurance in
NOT true
death benefit can be increased
, premiums are flexible
universal life insurance normally has a minimum guaranteed cash
value for duration of the policy
the cash value interest rate must equal or exceed a guaranteed
minimum value --- correct answer ---universal life insurance
normally has a minimum guaranteed cash value for duration of the
policy
contributions made by an employee to a qualified retirement plan are
required to be
subject to income taxes
fully refundable
nonforfeitable
Versions (Version A and B) Complete 500
Questions with 100% Correct Detailed
Verified Answers Already Graded A+ latest
update 2025
what happens when a policy owner borrows against the cash value of
his life insurance policy
the policy proceeds would be reduced by the outstanding loan balance
no additional loans can be taken out in the future
the amount borrowed is added to the policy owners gross income for
tax purposes
the interest on the loan is tax deductible --- correct answer ---the
policy proceeds would be reduced by the outstanding loan balance
,straight whole life insurance can be accurately described in all of
these statements EXCEPT
policy protection normally expires at age 65
nonforfeiture values are available to the policy owner
provides level protection with level premiums
cash value loans are permitted --- correct answer ---policy protection
normally expires at age 65
which statement regarding the joint and survivor life insurance
settlement options is NOT true
age of beneficiaries plays a factor when determining the payment
amounts
income continues until the last beneficiary dies
two or more beneficiaries can be paid
,the amount of each installment is larger than the single life income
option --- correct answer ---the amount of each installment is larger
than the single life income option
which statement regarding universal life insurance in correct
cash value accumulations have a guaranteed minimum interest rate
policy owner can change the face amount but not the premium
policy owner can change the premium but not the face amount
partial withdrawals cannot be made from the policy`s cash value ---
correct answer ---cash value accumulations have a guaranteed
minimum interest rate
which of the following statements about universal life insurance in
NOT true
death benefit can be increased
, premiums are flexible
universal life insurance normally has a minimum guaranteed cash
value for duration of the policy
the cash value interest rate must equal or exceed a guaranteed
minimum value --- correct answer ---universal life insurance
normally has a minimum guaranteed cash value for duration of the
policy
contributions made by an employee to a qualified retirement plan are
required to be
subject to income taxes
fully refundable
nonforfeitable
