AAMS Exam 2026
COMPREHENSIVE EXAM
QUESTIONS WITH DETAILED
VERIFIED AND 100% CORRECT
ANSWERS BRAND NEW EXAM
ALREADY GRADED A+!!
Which of these statements is most accurate with respect to the life
insurance needs of the typical family? - 🧠 ANSWER ✔✔Total life insurance
requirements may decrease as an individual approaches retirement
,Assume a client has $30,000 in a money market fund, $2,000 in a checking
account, a mortgage loan of $110,000 (not to be paid off, as it will be
transferred to the spouse), an auto loan of $20,000, and credit card
balances of $5,000. Assume that if he died, postmortem expenses would
be $15,000. What would be the cash requirements for this client? - 🧠
ANSWER ✔✔$8,000
An investment professional is assessing the life insurance needs of the
Robinson family. Mr. Robinson has determined that the family's immediate
cash flow requirements in the event of his death are $65,000. The amount
needed to meet all future funding requirements (net of Mrs. Robinson's
income and Social Security and pension benefits) is estimated to be
$550,000. The family owns a home in which their equity interest is
$200,000. Based upon these figures, the investment professional would
recommend life insurance with a face amount of: - 🧠 ANSWER
✔✔$615,000
With regard to financial planning, many individuals and households
overlook the potential needs for: - 🧠 ANSWER ✔✔disability income and
long-term care insurance
,Mrs. Bartlett purchased a life insurance policy that will pay $100,000 to her
beneficiary should she die at any time during the next year. The policy
guarantees the right to renew every year for the next five years, and builds
no cash value. Mrs. Bartlett has purchased a - 🧠 ANSWER ✔✔term life
insurance policy
Which types of clients would be identified as the best prospect for cash
value life insurance? - 🧠 ANSWER ✔✔Clients who prefer the discipline of
regular, periodic investments
With respect to cash value life policies, what part of the policy value, if any,
is subject to income taxation when the policy is surrendered? - 🧠 ANSWER
✔✔The amount of the cash value that exceeds the investment in the
contract
Brenda Bradford is the owner of a whole life policy on her husband, Rolf.
Their daughter, Vera, is named in the policy as the contingent beneficiary.
In issuing the policy, the insurance company has asked that a settlement
option be selected. Which one of the following individuals is currently
empowered to make the selection? - 🧠 ANSWER ✔✔Brenda, the policy
owner
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Your client, Ann, age 50, received a $300,000 inheritance from her late
parents' estate. She would like to invest this money in a safe place, where
it will grow in value until she takes early retirement at age 60. Which one of
the following would be the most logical choice for Ann? - 🧠 ANSWER
✔✔Single-premium deferred annuity
Ten years ago, June, age 58, purchased a deferred annuity with a fixed
rate of return of 4%. She believes that she could do better if she had a
variable annuity with performance tied to the stock market. June has held
on to this fixed-rate annuity out of fear that surrendering it would trigger a
taxable event and a possible penalty. You should explain that she: - 🧠
ANSWER ✔✔Can avoid the tax and the penalty by making a section 1035
exchange
If disability insurance premiums are paid with pretax dollars, any benefits
received would: - 🧠 ANSWER ✔✔be subject to income tax
Universal life insurance gives the policyowner the ability to adjust all of the
following except: - 🧠 ANSWER ✔✔mortality rates
COMPREHENSIVE EXAM
QUESTIONS WITH DETAILED
VERIFIED AND 100% CORRECT
ANSWERS BRAND NEW EXAM
ALREADY GRADED A+!!
Which of these statements is most accurate with respect to the life
insurance needs of the typical family? - 🧠 ANSWER ✔✔Total life insurance
requirements may decrease as an individual approaches retirement
,Assume a client has $30,000 in a money market fund, $2,000 in a checking
account, a mortgage loan of $110,000 (not to be paid off, as it will be
transferred to the spouse), an auto loan of $20,000, and credit card
balances of $5,000. Assume that if he died, postmortem expenses would
be $15,000. What would be the cash requirements for this client? - 🧠
ANSWER ✔✔$8,000
An investment professional is assessing the life insurance needs of the
Robinson family. Mr. Robinson has determined that the family's immediate
cash flow requirements in the event of his death are $65,000. The amount
needed to meet all future funding requirements (net of Mrs. Robinson's
income and Social Security and pension benefits) is estimated to be
$550,000. The family owns a home in which their equity interest is
$200,000. Based upon these figures, the investment professional would
recommend life insurance with a face amount of: - 🧠 ANSWER
✔✔$615,000
With regard to financial planning, many individuals and households
overlook the potential needs for: - 🧠 ANSWER ✔✔disability income and
long-term care insurance
,Mrs. Bartlett purchased a life insurance policy that will pay $100,000 to her
beneficiary should she die at any time during the next year. The policy
guarantees the right to renew every year for the next five years, and builds
no cash value. Mrs. Bartlett has purchased a - 🧠 ANSWER ✔✔term life
insurance policy
Which types of clients would be identified as the best prospect for cash
value life insurance? - 🧠 ANSWER ✔✔Clients who prefer the discipline of
regular, periodic investments
With respect to cash value life policies, what part of the policy value, if any,
is subject to income taxation when the policy is surrendered? - 🧠 ANSWER
✔✔The amount of the cash value that exceeds the investment in the
contract
Brenda Bradford is the owner of a whole life policy on her husband, Rolf.
Their daughter, Vera, is named in the policy as the contingent beneficiary.
In issuing the policy, the insurance company has asked that a settlement
option be selected. Which one of the following individuals is currently
empowered to make the selection? - 🧠 ANSWER ✔✔Brenda, the policy
owner
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Your client, Ann, age 50, received a $300,000 inheritance from her late
parents' estate. She would like to invest this money in a safe place, where
it will grow in value until she takes early retirement at age 60. Which one of
the following would be the most logical choice for Ann? - 🧠 ANSWER
✔✔Single-premium deferred annuity
Ten years ago, June, age 58, purchased a deferred annuity with a fixed
rate of return of 4%. She believes that she could do better if she had a
variable annuity with performance tied to the stock market. June has held
on to this fixed-rate annuity out of fear that surrendering it would trigger a
taxable event and a possible penalty. You should explain that she: - 🧠
ANSWER ✔✔Can avoid the tax and the penalty by making a section 1035
exchange
If disability insurance premiums are paid with pretax dollars, any benefits
received would: - 🧠 ANSWER ✔✔be subject to income tax
Universal life insurance gives the policyowner the ability to adjust all of the
following except: - 🧠 ANSWER ✔✔mortality rates
