XCEL Practice Exams __ Q’s & A’s

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? ️Ans - 20-Pay Life accumulates cash value faster than Straight Life A variable insurance policy: ️Ans - does not guarantee a return on its investment accounts A Renewable Term Policy is renewable at the option of the: ️Ans - Insured Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? ️Ans - Variable Life Which of the following actions is NOT possible with a Universal Life policy? ️Ans - Premiums may be applied as a credit against income tax Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? ️Ans - conversion What type of policy would offer a 40-year old the quickest accumulation of cash value? ️Ans - 20-pay life A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need? ️Ans - Universal Life J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? ️Ans - 20-pay Life