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Type of Insurance Policies (Xcel solutions) Questions and Answers Rated A+
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Type of Insurance Policies (Xcel solutions)
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Type of Insurance Policies (Xcelsolutions)
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - answer Family Maintenance Policy
Which of these types of life insurance allows the policy owner to have level premiums
and to also choose from a selection of investment options - answerVariable Life
S is covered by a whole life policy. Which insurance product can cover his children -
answer Child term Rider
Which statement about a whole life policy is correct? - answer Cash value may be
borrowed against
What kind of premium does a whole life policy have? - answer Level
Which of the following characteristics is CORRECT about interest sensitive Whole Life?
- answer Premium Payments can vary
S is close to retiring and would like to purchase a policy that will yield greater gains than
bonds, but will still protect the principal with a minimum level or risk. Which product
would S be advised to purchase? - answerEquity Index Insurance
The Investment gains from a Universal Life Policy usually go toward - answerThe cash
Value
How does a typical Variable Life Policy investment account grow? - answerThrough
Mutual funds, stocks, bonds
When is the face amount of a Whole Life policy paid? - answerWhen the insured dies or
at the policy's maturity date, whichever happens first
All of these insurance products require an agent to have proper FINRA securities
registration in order to sell them, EXCEPT for: - answerModified Whole Life
Which of these is an element of a variable life policy? - answerA fixed, Level Premium
T would like to assured $10,000 is available in 10 years to replace a roof on his house.
What kind of $10,000 policy should T purchase - answerTen-year Endowment
, The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is" - answerThe cost
Stranger Owned Life Insurance (STOLI) is when a person purchases life insurance only
to sell to an - answerThird Party with no insurable interest
K buys a policy where the premium stays fixed for the first 5 years. The premium than
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? - answerModified Whole Life
Which is true concerning a Variable Universal Life Policy - answerPolicyowner controls
where the investment will go and selects the amount of the premium payment
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - answer20-pay life accumulates
cash value faster than Straight Life
Which of the following policies is characterized by a flexible premium and death benefit
and allows the policy owner control of the investment aspect of the plan? -
answerVariable Universal Life
The Universal Life Policy is called an unbundled Life Policy because the policyholder
can see the expense charges, the interest earned, and the: - answerCost of Insurance
Which type of policy is considered to be overfunded, as stated by IRS guidelines -
answerModified Endowment Contract
What type of policy would offer a 40-year old the quickest accumulation of cash value -
answer20-pay life
All of these statements about Equity Indexed Life Insurance are correct, EXCEPT -
answerThe premiums can be lowered or raised, based on investment performance
A father who dies within 3 years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waived under which provision? - answerPayor
Provision
What kind of life insurance product covers children under their parent's policy? -
answerA term rider
When applied to Whole Life insurance, the word "straight" denotes - answerThe
duration of premium payments
Which of these characteristics is consistent with a Straight Life Policy? -
answerPremiums are payable for as long as there is insurance coverage in force
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