1|Page
TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE 2 LATEST VERSIONS ACTUAL
VERIFIED EXAM COMPLETE 500 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST EXAM!!!
21) A life insurance policy whose cash value will fluctuate
depending upon the performance of a separate account is:
A- Limited-pay Life
B- Universal Life
C- Ordinary Life
D- Variable Life - ANSWER-D- Variable Life
22) A life insurance policy that combines term insurance
protection, a flexible premium, and cash value
accumulation is:
A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life - ANSWER-C- Universal Life
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23) Which of the following types of insurance policies
would provide the greatest amount of protection for a
temporary period during which an insured will have limited
financial resources?
A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity - ANSWER-A- Term
24) At age 30, Tom Morris wishes to purchase a Whole
Life policy. His producer explains that he can pay for the
policy in several ways. One method is called 20-Pay Life,
and another, Straight Life. Tom wishes to know which plan
will accumulate cash value at a faster rate in the early
years of the policy. Which of the following would be the
producer's most appropriate response?
A- "20-Pay Life will accumulate cash value faster."
B- "The rate of cash-value accumulation depends on the
profitability of the insurance company."
C- "Straight Life will accumulate cash value faster."
D- "Both plans will accumulate cash value at the same
rate." - ANSWER-A- "20-Pay Life will accumulate cash
value faster."
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1) Sandra Timms, age 27, is advised by her producer to
purchase Life insurance to cover a 20-year-amortized
$50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at the
minimum premium outlay?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years -
ANSWER-D—A $50,000 Decreasing Term policy for 20
years
Explanation: The key here is "minimum premium". Term is
the most inexpensive type of coverage. Since Sandra's
$50,000 loan will be paid off over 20 years and the loan
balance will decrease each year, Decreasing Term makes
sense. Decreasing Term is not renewable.
2) A 45-year old customer who is seeking to supplement
his retirement income at age 65 would not buy a:
A- Deferred Annuity
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B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity - ANSWER-B- Equity Indexed
Annuity
3) John Livingston owns a 30-Pay Life policy that he
purchased at the age of 30. The cash value will equal the
face amount of the policy when he reaches the age of:
A- 60
B- 70
C- 100
D- 30 - ANSWER-C- 100
Explanation: Limited Pay Life insurance policies such as
Life Paid Up at 65 or 20-Pay Life are simply variations of
Whole Life policies. The cash value will equal face amount
of the policy (at least) at the maturity of the policy, which is
always age 100 on Whole Life policies. These limited-pay
policies are designed so that the insured may pay his or
her premiums faster and be "paid up" at a certain age.
However, just because the premiums are paid up doesn't
mean the policy has matured.
TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE 2 LATEST VERSIONS ACTUAL
VERIFIED EXAM COMPLETE 500 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST EXAM!!!
21) A life insurance policy whose cash value will fluctuate
depending upon the performance of a separate account is:
A- Limited-pay Life
B- Universal Life
C- Ordinary Life
D- Variable Life - ANSWER-D- Variable Life
22) A life insurance policy that combines term insurance
protection, a flexible premium, and cash value
accumulation is:
A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life - ANSWER-C- Universal Life
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23) Which of the following types of insurance policies
would provide the greatest amount of protection for a
temporary period during which an insured will have limited
financial resources?
A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity - ANSWER-A- Term
24) At age 30, Tom Morris wishes to purchase a Whole
Life policy. His producer explains that he can pay for the
policy in several ways. One method is called 20-Pay Life,
and another, Straight Life. Tom wishes to know which plan
will accumulate cash value at a faster rate in the early
years of the policy. Which of the following would be the
producer's most appropriate response?
A- "20-Pay Life will accumulate cash value faster."
B- "The rate of cash-value accumulation depends on the
profitability of the insurance company."
C- "Straight Life will accumulate cash value faster."
D- "Both plans will accumulate cash value at the same
rate." - ANSWER-A- "20-Pay Life will accumulate cash
value faster."
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1) Sandra Timms, age 27, is advised by her producer to
purchase Life insurance to cover a 20-year-amortized
$50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at the
minimum premium outlay?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years -
ANSWER-D—A $50,000 Decreasing Term policy for 20
years
Explanation: The key here is "minimum premium". Term is
the most inexpensive type of coverage. Since Sandra's
$50,000 loan will be paid off over 20 years and the loan
balance will decrease each year, Decreasing Term makes
sense. Decreasing Term is not renewable.
2) A 45-year old customer who is seeking to supplement
his retirement income at age 65 would not buy a:
A- Deferred Annuity
, 4|Page
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity - ANSWER-B- Equity Indexed
Annuity
3) John Livingston owns a 30-Pay Life policy that he
purchased at the age of 30. The cash value will equal the
face amount of the policy when he reaches the age of:
A- 60
B- 70
C- 100
D- 30 - ANSWER-C- 100
Explanation: Limited Pay Life insurance policies such as
Life Paid Up at 65 or 20-Pay Life are simply variations of
Whole Life policies. The cash value will equal face amount
of the policy (at least) at the maturity of the policy, which is
always age 100 on Whole Life policies. These limited-pay
policies are designed so that the insured may pay his or
her premiums faster and be "paid up" at a certain age.
However, just because the premiums are paid up doesn't
mean the policy has matured.
