INSURANCE LICENSE PRACTICE
XCEL SOLUTIONS EXAM#3 PART 1
LIFE POLICIES Q&A
which of the following policies combines investment choices with a form of term
coverage? - ANSWER-Variable universal life
What kind of life insurance policy pays a specified monthly income to a beneficiary
for 30 years and then pays a lump sum benefit at the end of the 30 year? -
ANSWER-Family maintenance policy
G purchased a family income policy at age 40 policy has a 20-year Rider. If g were
to die at age 50 how long would G's family receive an income? - ANSWER-10 years
later
A limited pay life policy has? - ANSWER-Premium payments limited to a specific
number of years
Which of the following features a group term life policy enables an individual to leave
the group and continue his or her insurance without providing evidence of
insurability? - ANSWER-Conversion privilege
Which of the following combination plans is designed to protect an insured from an
unpaid mortgage balance upon premature death? - ANSWER-Joint life
Which of the following types of policies best identifies one in which the cash value
may fluctuate to reflect changing assumptions regarding mortality cost interest and
expense factors? - ANSWER-Universal life
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called? - ANSWER-Whole life
A variable insurance policy? - ANSWER-Does not guarantee a return on its
investment account
Q would like to purchase $100,000 of permanent protection on his wife and $50,000
of term coverage on himself under the same policy. What kind of policy should Q
purchase? - ANSWER-Whole life policy with other insured rider
Which provision allows the policyowner to change a term life policy to a permanent
one without providing proof of good health? - ANSWER-Conversion
What kind of premium does a whole life policy have? - ANSWER-Level
M purchases a $70,000 life insurance policy with premium payments of $550 a year
for the first five years at the beginning of the 60 or the premium will increase to $800
per year but will remain level thereafter the face amount will remain at 70000
XCEL SOLUTIONS EXAM#3 PART 1
LIFE POLICIES Q&A
which of the following policies combines investment choices with a form of term
coverage? - ANSWER-Variable universal life
What kind of life insurance policy pays a specified monthly income to a beneficiary
for 30 years and then pays a lump sum benefit at the end of the 30 year? -
ANSWER-Family maintenance policy
G purchased a family income policy at age 40 policy has a 20-year Rider. If g were
to die at age 50 how long would G's family receive an income? - ANSWER-10 years
later
A limited pay life policy has? - ANSWER-Premium payments limited to a specific
number of years
Which of the following features a group term life policy enables an individual to leave
the group and continue his or her insurance without providing evidence of
insurability? - ANSWER-Conversion privilege
Which of the following combination plans is designed to protect an insured from an
unpaid mortgage balance upon premature death? - ANSWER-Joint life
Which of the following types of policies best identifies one in which the cash value
may fluctuate to reflect changing assumptions regarding mortality cost interest and
expense factors? - ANSWER-Universal life
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called? - ANSWER-Whole life
A variable insurance policy? - ANSWER-Does not guarantee a return on its
investment account
Q would like to purchase $100,000 of permanent protection on his wife and $50,000
of term coverage on himself under the same policy. What kind of policy should Q
purchase? - ANSWER-Whole life policy with other insured rider
Which provision allows the policyowner to change a term life policy to a permanent
one without providing proof of good health? - ANSWER-Conversion
What kind of premium does a whole life policy have? - ANSWER-Level
M purchases a $70,000 life insurance policy with premium payments of $550 a year
for the first five years at the beginning of the 60 or the premium will increase to $800
per year but will remain level thereafter the face amount will remain at 70000
