XCEL Florida Insurance Exam questions and correct answers

e coverage normally remain on a limited pay life policy? - ANSWERS Age 100 what type of policy would offer a 40-year old the quickest accumulation of cash value. - ANSWERS 20- pay life Naya is a 40- year old applicant who would like to retire at 70. He is looking to buy a life insurance policy with level premiums, permanent protection and be paid-up at retirement. Which of these should she purchase - ANSWERS 30-Pay Life A 40 year old would like to purchase a Whole Life policy that will accumulate ah value at a faster rate in the early years of the policy. With statement is correct. - ANSWERS 20-pay life accumulates faster then cash value faster than Straight Life. What kind of policy has premium that stays fixed for the first five years then increases in year 6 and stays level thereafter. Death benefits stays the same. - ANSWERS Modified whole life Q would like to purchase $100,000 of permanent protection on his wife at $50,000 of term coverage on himself under the same policy. What kind of policy does he need. - ANSWERS Whole life policy with other insured rider. Describe a Modified Endowment Contract. - ANSWERS Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract. Which type of policy is considered to be overfunded, as stated by IRS guidelines? - ANSWERS Modified Endowment Contract D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed? - ANSWERS Level term Term insurance has which of the following characteristics? - ANSWERS Expires at the end of the Policy period. What type of life insurance gives the greatest amount of coverage at a limited period of time? - ANSWERS Term Life Which of these life insurance riders allows the applicant to have excess coverage? - ANSWERS Term rider What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time. - ANSWERS Decreasing Term A 15-year Mortgage is best prote4ctedd by what kind of life policy? - ANSWERS 15- year decreasing term