XCEL LIFE POLICIES EXAM 2024/2025 WITH 100% CORRECT ANSWERS
2 views 0 purchase
Course
XCEL LIFE POLICIES
Institution
XCEL LIFE POLICIES
XCEL LIFE POLICIES EXAM 2024/2025 WITH 100% CORRECT ANSWERS
PrepWise: Your Ultimate Online Exam Store!
Ace your exams with PrepWise! Find top-notch study materials, practice tests, and expert guidance all in one place.
Why Choose PrepWise?
Comprehensive Study Guides
Accurate Pr...
XCEL LIFE POLICIES EXAM 2024/2025
WITH 100% CORRECT ANSWERS
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 - correct answer -D. Survivorship Life Policy
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 - correct answer -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 - correct answer -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 - correct answer -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 - correct answer -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 - correct answer -A. Pre-death distributions will become
taxable
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 - correct answer -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 - correct answer -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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PREPWISE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
