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XCEL Chapter 4. Life Insurance Policies - Provisions, Options and Riders Questions and Answers 2024
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XCEL Chapter 4. Life Insurance Policies - Provisions, Options and Riders
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XCEL Chapter 4. Life Insurance Policies- Provisions, Options and Riders
Which statement regarding whole life insurance is accurate? - answer Insurance
coverage can continue for life
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
premium rate will be the current rate for - answer Ten year term insurance for a person
aged 55
When would evidence of insurability be required for a person already covered with a
variable universal life policy? - answer When the death benefit is increased
Assets that back the non-guaranteed values of variable life insurance products are held
in which account? - answer Separate account set up by the insurer
Which of these statements accurately portrays an adjustable life insurance policy? -
answer Policy can alternate between forms of term and whole life insurance
John received a one-time distribution of $50,000 from his modified endowment contract
(MEC). Prior to that, the contact's cash value was $150,000, the contract investment
amount was $100,000, and the death benefit was $500,000. What percentage of the
$50,000 distribution was taxable as ordinary income? - answer100%
How long does protection normally extend to under a limited pay whole life policy? -
answer Until age 100
When can a life insurance policy be issued WITHOUT the insured's consent? - answer
When a parent purchases a policy on the life of a minor child
Which of the following is a TRUE statement regarding universal life insurance? -
answerPolicy indicates how much of each premium is used toward company expenses
All of these are considered feature of whole life insurance EXCEPT - answerInitial
premium is lower than for an equivalent amount of term insurance
Which type of life insurance policy is best suited for paying off the outstanding balance
of a 30-year mortgage in the event of the insured's death? - answer30-year decreasing
term
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