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XCEL LIFE POLICIES EXAM QUESTIONS AND ANSWERS
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XCEL LIFE POLICIES EXAM QUESTIONS AND ANSWERS
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XCEL LIFE POLICIES EXAM QUESTIONS ANDANSWERS
A policyowner may change two policy features on what type of life insurance?
A. Adjustable Life
B. Modified Whole Life
C. Decreasing Term Life
D. Whole Life - Answers -A. Adjustable Life
Adjustable Life allows the policyowner to change two policy features: premium and face
amount.
A single premium cash value policy can be described as
A. A policy that is guaranteed issue
B. A policy that is paid up after only one payment
C. A policy that covers two or more lives
D. A policy that only requires an annual payment - Answers -B. A policy that is paid up
after only one payment
A single premium cash value policy is best described as a policy that is paid up after
only one payment
Which of these would be the best example of a limited pay life insurance policy?
A. Term life policy with premiums paid up after 20 years
B. Term life policy that returns cash value after 20 years
C. Whole life policy that pays out its cash value over a 20 year period
D. Whole life policy with premiums paid up after 20 years - Answers -D. Whole life
policy with premiums paid up after 20 years
A whole life insurance policy where the premiums are paid up after 20 years would be
considered a limited pay life insurance policy
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a(n)
A. Adjustable policy
B. Variable Universal Policy
C. Limited Pay Policy
D. Level Term Policy - Answers -C. Limited Pay Policy
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a limited pay policy.
, Under a Modified Endowment Contract, what are the likely tax consequences?
A. Pre-death distributions will become taxable
B. Premium payments are tax deductible
C. Interest on policy loans is tax deductible
C. Cash value cannot be surrendered early - Answers -A. Pre-death distributions will
become taxable
Which type of multiple protection policy pays on the death of the last person?
A. Joint Life Policy
B. Dual Life Policy
C. Multiple Life Policy
D. Survivorship Life Policy - Answers -D. Survivorship Life Policy
The tax consequence of a modified endowment contract is pre-death distributions are
likely to become taxable.
A limited payment whole life policy provides
A. Lifetime protection
B. Discounted Premiums
C. Protection for more than one person
D. Protection for 20 years - Answers -A. Lifetime protection
Premiums on limited payment whole life insurance are paid for a limited number of
years, but the benefits last a lifetime.
All of these are valid options for an Adjustable Life Policy EXCEPT
A. The policy's protection period can be modified
B. A nonforfeiture option can be used to increase the death benefit
C. The policy's premium can be increased or decreased
D. The policy's death benefit can be increased or decreased - Answers -B. A
nonforfeiture option can be used to increase the death benefit
Increasing the death benefit by using one of the nonforfeiture options is not an option in
an Adjustable Life Policy
Which type of life insurance policy pays the face amount at the end of the specified
period if the insured is still alive?
A. Universal life policy
B. Modified life policy
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