XCEL CHAPTER 5 MOST TESTED STUDY
GUIDE 2026 COMPREHENSIVE Q&A
PASSED
⩥ A life insurance policy that has premiums fully paid up within a stated
time period is called. Answer: limited payment insurance
⩥ A Modified Endowment Contract (MEC) is best described as. Answer:
A life insurance contract which accumulates cash values higher than the
IRS will allow
⩥ Shawn, Mike, and Dave are brothers who have a $100,000 "first to
die" joint life policy covering all three of their lives. If Mike dies first,
the policy proceeds. Answer: will no longer provide insurance protection
⩥ Julie has a $100,000 30-year mortgage on her new home. What type
of life insurance could she purchase that is designed to pay off the loan
balance if she dies within the 30-year period?. Answer: Decreasing term
insurance
⩥ What is the automatic continuance of insurance coverage referred to
as?. Answer: renewal
, ⩥ All of these statements concerning whole life insurance are false
EXCEPT. Answer: When a whole life policy is surrendered, income
taxes may be owed
⩥ Variable life insurance and Universal life insurance are very similar.
Which of these features are held exclusively by variable universal life
insurance?. Answer: Policyowner has the right to select the investment
which will provide the greatest return
⩥ A securities license is required for a life insurance producer to sell.
Answer: variable life insurance
⩥ Which policy feature makes a universal life policy different from a
whole life policy?. Answer: A flexible premium schedule
⩥ The least expensive option to pay off a 30-year mortgage balance
would be. Answer: decreasing term life
⩥ Joe has a life insurance policy that has a face amount of $300,000.
After a number of years, the policy's cash value accumulates to $50,000
and the face amount becomes $350,000. What kind of policy is this?.
Answer: Universal Life policy
GUIDE 2026 COMPREHENSIVE Q&A
PASSED
⩥ A life insurance policy that has premiums fully paid up within a stated
time period is called. Answer: limited payment insurance
⩥ A Modified Endowment Contract (MEC) is best described as. Answer:
A life insurance contract which accumulates cash values higher than the
IRS will allow
⩥ Shawn, Mike, and Dave are brothers who have a $100,000 "first to
die" joint life policy covering all three of their lives. If Mike dies first,
the policy proceeds. Answer: will no longer provide insurance protection
⩥ Julie has a $100,000 30-year mortgage on her new home. What type
of life insurance could she purchase that is designed to pay off the loan
balance if she dies within the 30-year period?. Answer: Decreasing term
insurance
⩥ What is the automatic continuance of insurance coverage referred to
as?. Answer: renewal
, ⩥ All of these statements concerning whole life insurance are false
EXCEPT. Answer: When a whole life policy is surrendered, income
taxes may be owed
⩥ Variable life insurance and Universal life insurance are very similar.
Which of these features are held exclusively by variable universal life
insurance?. Answer: Policyowner has the right to select the investment
which will provide the greatest return
⩥ A securities license is required for a life insurance producer to sell.
Answer: variable life insurance
⩥ Which policy feature makes a universal life policy different from a
whole life policy?. Answer: A flexible premium schedule
⩥ The least expensive option to pay off a 30-year mortgage balance
would be. Answer: decreasing term life
⩥ Joe has a life insurance policy that has a face amount of $300,000.
After a number of years, the policy's cash value accumulates to $50,000
and the face amount becomes $350,000. What kind of policy is this?.
Answer: Universal Life policy
