INDIANA LIFE INSURANCE EXACTITUDE EXAM SERIES 2024
Which of the following is NOT a characteristic of a Variable Annuity? A. Premium Payments may be level or flexible or single premium B. The cash values are invested in securities. C. The non-forfeiture values will provide for the return of the cash value should the annuitant die during the accumulation period. D. It provides for a tax-free death benefit. - correct answer D. It provides for a tax-free death benefit. All of the following policies provide for the tax deferred accumulation of cash value EXCEPT: A. Interest Sensitive Whole Life B. Single Premium Variable Annuity C. Variable Universal Life D. Term Life - correct answer D. Term Life All of the following are true statements about the taxation of life insurance benefits except: A. Policy loans are taxed as ordinary income B. The cash value in a life insurance policy grows on a tax deferred basis. C. The interest earned on the "interest" Settlement Option is taxed as ordinary income. D. The death benefit of a life policy is received by the beneficiary federal income tax free. - correct answ
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