XCEL EXAMPREP VERIFIED QUESTIONS
AND SOLUTIONS COMPLETE LEARNING
PACKAGE
●● 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
Answer: A. Adjustable Life
Adjustable Life allows the policyowner to change two policy features:
premium and face amount.
●● 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
,Answer: 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
●● 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
Answer: 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
●● 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
Answer: 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.
●● Under a Modified Endowment Contract, what are the likely tax
consequences?
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
Answer: A. Pre-death distributions will become taxable
The tax consequence of a modified endowment contract is pre-death
distributions are likely to become taxable.
●● A limited payment whole life policy provides
A. Lifetime protection
B. Discounted Premiums
C. Protection for more than one person
AND SOLUTIONS COMPLETE LEARNING
PACKAGE
●● 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
Answer: A. Adjustable Life
Adjustable Life allows the policyowner to change two policy features:
premium and face amount.
●● 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
,Answer: 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
●● 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
Answer: 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
●● 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
Answer: 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.
●● Under a Modified Endowment Contract, what are the likely tax
consequences?
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
Answer: A. Pre-death distributions will become taxable
The tax consequence of a modified endowment contract is pre-death
distributions are likely to become taxable.
●● A limited payment whole life policy provides
A. Lifetime protection
B. Discounted Premiums
C. Protection for more than one person
