XCEL PRACTICE EXAMS Q&A

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 A variable insurance policy: - Answer- does not guarantee a return on its investment accounts A Renewable Term Policy is renewable at the option of the: - Answer- 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? - Answer- Variable Life Which of the following actions is NOT possible with a Universal Life policy? - Answer- 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? - Answer- conversion What type of policy would offer a 40-year old the quickest accumulation of cash value? - Answer- 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? - Answer- 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? - Answer- 20-pay Life All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for: - Answer- Modified Whole Life All of these are characteristics of an Adjustable Life policy, EXCEPT: - Answer- face amount can be adjusted using policy dividends What kind of special need would a policyowner require with an Adjustable Life insurance policy? - Answer- flexible premiums K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? - Answer- $20,000 death benefit What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's