XCEL Chapter 4 A Revision Exam Questions & Answers.

XCEL Chapter 4 A Revision Exam Questions & Answers. Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would be - CORRECT ANSWER 500,000.00 A life insurance policy that has premiums fully paid up within a stated time period is called - CORRECT ANSWER limited payment insurance A Modified Endowment Contract (MEC) is best described as - CORRECT ANSWER A life insurance contract which accumulates cash values higher than the IRS will allow Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds - CORRECT ANSWER will no longer provide insurance protection Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? - CORRECT ANSWER Decreasing term insurance What is the automatic continuance of insurance coverage referred to as? - CORRECT ANSWER renewal All of these statements concerning whole life insurance are false EXCEPT - CORRECT ANSWER When a whole life policy is surrendered, income taxes may be owed Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? - CORRECT ANSWER Policyowner has the right to select the investment which will provide the greatest return