TEXAS LIFE INSURANCE EXAM SCRIPT
COMPLETE QUESTIONS ACCURATE
ANSWERS GRADED A PLUS PREMIUM
REVIEW
⩥ Because of an injury, an insured has been unable to work for 7
months. He wasn't able to pay his life insurance policy premium, yet the
policy remained in force. The policy includes
Answer: Waiver of premium rider
⩥ What is not TRUE about the guaranteed insurability rider?
Answer: it is available automatically, for no extra premium
⩥ Generally, the premium paid for personal life insurance is?
Answer: Not tax deductible
⩥ What is NOT true regarding policy loans?
Answer: Money borrowed from the cash value is taxable.
⩥ What is NOT a requirement of a qualified plan?
Answer: it must be temporary
, ⩥ If a life policy does not pass the 7-pay test, that policy...
Answer: Becomes a Modified Endowment Contract
⩥ The 10% early withdrawal penalty from an IRA can be waived for...
Answer: Catastrophic medical expenses
⩥ The number of Quarters required to obtain a fully insured status to
receive Social Security benefits is...
Answer: 40
⩥ What kind of person would not be eligible to set up contribution to a
traditional IRA?
Answer: Age 72, a nurse
⩥ What is the requirement for a number of employees in a SIMPLE plan
Answer: No more than 100
⩥ The advantage of qualified plans to employers is
Answer: Tax-deductible contributions
⩥ With personal life insurance, the lump-sum death is received by the
beneficiary...
Answer: Tax free.
COMPLETE QUESTIONS ACCURATE
ANSWERS GRADED A PLUS PREMIUM
REVIEW
⩥ Because of an injury, an insured has been unable to work for 7
months. He wasn't able to pay his life insurance policy premium, yet the
policy remained in force. The policy includes
Answer: Waiver of premium rider
⩥ What is not TRUE about the guaranteed insurability rider?
Answer: it is available automatically, for no extra premium
⩥ Generally, the premium paid for personal life insurance is?
Answer: Not tax deductible
⩥ What is NOT true regarding policy loans?
Answer: Money borrowed from the cash value is taxable.
⩥ What is NOT a requirement of a qualified plan?
Answer: it must be temporary
, ⩥ If a life policy does not pass the 7-pay test, that policy...
Answer: Becomes a Modified Endowment Contract
⩥ The 10% early withdrawal penalty from an IRA can be waived for...
Answer: Catastrophic medical expenses
⩥ The number of Quarters required to obtain a fully insured status to
receive Social Security benefits is...
Answer: 40
⩥ What kind of person would not be eligible to set up contribution to a
traditional IRA?
Answer: Age 72, a nurse
⩥ What is the requirement for a number of employees in a SIMPLE plan
Answer: No more than 100
⩥ The advantage of qualified plans to employers is
Answer: Tax-deductible contributions
⩥ With personal life insurance, the lump-sum death is received by the
beneficiary...
Answer: Tax free.
