XCEL UPDATED COMPLETE QUESTIONS
AND ANSWERS PREMIUM REVIEW SHEET
●● All of these are characteristics of an Adjustable Life policy,
EXCEPT:
Answer: face amount can be adjusted using policy dividends
●● The most important factor to consider when determining whether to
convert term insurance at the insured's attained age or the insured's
original age is:
Answer: the cost
●● F needs life insurance that provides coverage for only a limited
amount of time with a death benefit that changes regularly according to
a schedule. What kind of policy is needed?
Answer: Decreasing term policy
●● Under a Renewable Term policy,
Answer: the renewal premium is calculated on the basis of the insured's
attained age
●● A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the early years
, of the policy. Which of these statements made by the producer would be
correct?
Answer: 20-Pay Life accumulates cash value faster than Straight Life
●● Which of these statements describe a Modified Endowment Contract
(MEC)?
Answer: Falls below the minimum amount of premium that can be paid
into a policy and still have it recognized as a life insurance contract
●● What type of life insurance are credit policies issued as?
Answer: Term
●● M purchases a $70,000 Life Insurance Policy with premium
payments of $550 a year for the first 5 years. At the beginning of the
sixth year, the premium will increase to $800 per year but will remain
level thereafter. The face amount will remain at $70,000 throughout the
life of the policy. The type of policy that M has purchased is:
Answer: Modified Premiums Life
●● A father who dies within 3 years after purchasing a life insurance
policy on his infant daughter can have the policy premiums waived
under which provision
Answer: Payor provision
AND ANSWERS PREMIUM REVIEW SHEET
●● All of these are characteristics of an Adjustable Life policy,
EXCEPT:
Answer: face amount can be adjusted using policy dividends
●● The most important factor to consider when determining whether to
convert term insurance at the insured's attained age or the insured's
original age is:
Answer: the cost
●● F needs life insurance that provides coverage for only a limited
amount of time with a death benefit that changes regularly according to
a schedule. What kind of policy is needed?
Answer: Decreasing term policy
●● Under a Renewable Term policy,
Answer: the renewal premium is calculated on the basis of the insured's
attained age
●● A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the early years
, of the policy. Which of these statements made by the producer would be
correct?
Answer: 20-Pay Life accumulates cash value faster than Straight Life
●● Which of these statements describe a Modified Endowment Contract
(MEC)?
Answer: Falls below the minimum amount of premium that can be paid
into a policy and still have it recognized as a life insurance contract
●● What type of life insurance are credit policies issued as?
Answer: Term
●● M purchases a $70,000 Life Insurance Policy with premium
payments of $550 a year for the first 5 years. At the beginning of the
sixth year, the premium will increase to $800 per year but will remain
level thereafter. The face amount will remain at $70,000 throughout the
life of the policy. The type of policy that M has purchased is:
Answer: Modified Premiums Life
●● A father who dies within 3 years after purchasing a life insurance
policy on his infant daughter can have the policy premiums waived
under which provision
Answer: Payor provision
