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TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH INSURANCE 2 LATEST VERSIONS ACTUAL EXAM COMPLETE 500 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+$50.49
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TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH INSURANCE 2 LATEST VERSIONS ACTUAL EXAM COMPLETE 500 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+
TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE 2 LATEST VERSIONS
ACTUAL EXAM COMPLETE 500 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE 2 LATEST VERSIONS 2024-2025
ACTUAL EXAM COMPLETE 500 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
VERSION 1
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|Page
2) A 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a:
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.
,3|Page
However, just because the premiums are paid up doesn't
mean the policy has matured.
4) Which of the following is an example of a Limited-Pay Life
policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 - ANSWER- C- Life Paid-Up at
Age 65
5) Which of the following policies provides the greatest amount
of protection for an insured's premium dollar as well as some
cash accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life - ANSWER- B- Whole Life
If we had not mentioned cash accumulation, the answer
would have been Term. However, Term has no cash value,
so the answer is Whole Life, which is the most inexpensive
type of permanent insurance and is required to have a cash
value after the third policy year. Although Limited Pay Life
, 4|Page
is a type of Whole Life, it is incorrect since it is usually quite
expensive due to the shortened pay-in period. Annuities have
no cash value except the money the annuitant paid in. Since
there is no death benefit, no protection is offered.
6) Which of the following individual policy conversions is
usually permitted without any evidence of insurability? -
ANSWER- C- Conversion from a Term policy to a Whole Life
policy
7) Which of the following is NOT correct regarding Ordinary
Whole Life policies?
A- The premiums payments are owed annually until you die or
reach age 100
B- The cash value grows more quickly in the beginning years of
the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance -
ANSWER- D- Ordinary Whole Life is a type of permanent
insurance
8) Which of the following statements is true about the premium
payment schedule for a Whole Life policy?
A- Premiums are payable for a designated period of time only,
after which coverage is no longer provided
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