Xcel Life Policies Exam Questions and
Answers
1. 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
ANS D. Survivorship Life Policy
2. 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
ANS A. Adjustable Life
Adjustable Life allows the policyowner to change two policy features
,premium and face amount.
3. 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
ANS 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
4. 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
ANS 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
5. 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
ANS 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.
6. Under a Modified Endowment Contract, what are the likely
tax conse- quences?
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
ANS A. Pre-death distributions will become taxable
The tax consequence of a modified endowment contract is pre-death distributions are likely to become
taxable.
7. A limited payment whole life policy provides
Answers
1. 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
ANS D. Survivorship Life Policy
2. 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
ANS A. Adjustable Life
Adjustable Life allows the policyowner to change two policy features
,premium and face amount.
3. 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
ANS 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
4. 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
ANS 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
5. 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
ANS 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.
6. Under a Modified Endowment Contract, what are the likely
tax conse- quences?
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
ANS A. Pre-death distributions will become taxable
The tax consequence of a modified endowment contract is pre-death distributions are likely to become
taxable.
7. A limited payment whole life policy provides
