XCEL Practice Exams Questions with
Correct Answers 2025
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? - CORRECT ANSWER -20-Pay Life accumulates cash value faster than
Straight Life
A variable insurance policy: - CORRECT ANSWER -does not guarantee a return on its investment
accounts
A Renewable Term Policy is renewable at the option of the: - CORRECT 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? - CORRECT ANSWER -Variable Life
Which of the following actions is NOT possible with a Universal Life policy? - CORRECT 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? - CORRECT ANSWER -conversion
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
CORRECT 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? - CORRECT 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? - CORRECT 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: - CORRECT ANSWER -Modified Whole Life
All of these are characteristics of an Adjustable Life policy, EXCEPT: - CORRECT ANSWER -face
amount can be adjusted using policy dividends
What kind of special need would a policyowner require with an Adjustable Life insurance
policy? - CORRECT 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? - CORRECT ANSWER -
$20,000 death benefit
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? -
CORRECT ANSWER -Face amount plus the policy's cash value
Variable Life products require a producer to - CORRECT ANSWER -hold a Life Insurance license
and a Securities license
What kind of life policy either pays the face value upon the death of the insured or when the
insured reaches age 100? - CORRECT ANSWER -whole life
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? - CORRECT
ANSWER -Whole life policy with other insured rider
, Which of the following types of policies pays a benefit if the insured goes blind? - CORRECT
ANSWER -AD&D
All of these statements about Equity Indexed Life Insurance are correct, EXCEPT: - CORRECT
ANSWER -The premiums can be lowered or raised, based on investment performance
M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first
5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will
remain level thereafter. The face amount will remain at $70,000 throughout the life of the
policy. The type of policy that M has purchased is - CORRECT ANSWER -Modified Premium Life
Additional coverage can be added to a Whole Life policy by adding a(n): - CORRECT ANSWER -
decreasing term rider
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The
insurer will deduct the outstanding loan balance from the: - CORRECT ANSWER -policy proceeds
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself? - CORRECT ANSWER -
Entire Contract provision
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S
dies 1 year later of natural causes. How much will the insurer pay the beneficiary? - CORRECT
ANSWER -$50,000
A policy loan is made possible by which of these life insurance policy features? - CORRECT
ANSWER -Cash value provision
What is the Suicide provision designed to do? - CORRECT ANSWER -safeguard the insurer from
an applicant who is contemplating suicide
Correct Answers 2025
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? - CORRECT ANSWER -20-Pay Life accumulates cash value faster than
Straight Life
A variable insurance policy: - CORRECT ANSWER -does not guarantee a return on its investment
accounts
A Renewable Term Policy is renewable at the option of the: - CORRECT 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? - CORRECT ANSWER -Variable Life
Which of the following actions is NOT possible with a Universal Life policy? - CORRECT 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? - CORRECT ANSWER -conversion
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
CORRECT 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? - CORRECT 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? - CORRECT 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: - CORRECT ANSWER -Modified Whole Life
All of these are characteristics of an Adjustable Life policy, EXCEPT: - CORRECT ANSWER -face
amount can be adjusted using policy dividends
What kind of special need would a policyowner require with an Adjustable Life insurance
policy? - CORRECT 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? - CORRECT ANSWER -
$20,000 death benefit
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? -
CORRECT ANSWER -Face amount plus the policy's cash value
Variable Life products require a producer to - CORRECT ANSWER -hold a Life Insurance license
and a Securities license
What kind of life policy either pays the face value upon the death of the insured or when the
insured reaches age 100? - CORRECT ANSWER -whole life
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? - CORRECT
ANSWER -Whole life policy with other insured rider
, Which of the following types of policies pays a benefit if the insured goes blind? - CORRECT
ANSWER -AD&D
All of these statements about Equity Indexed Life Insurance are correct, EXCEPT: - CORRECT
ANSWER -The premiums can be lowered or raised, based on investment performance
M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first
5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will
remain level thereafter. The face amount will remain at $70,000 throughout the life of the
policy. The type of policy that M has purchased is - CORRECT ANSWER -Modified Premium Life
Additional coverage can be added to a Whole Life policy by adding a(n): - CORRECT ANSWER -
decreasing term rider
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The
insurer will deduct the outstanding loan balance from the: - CORRECT ANSWER -policy proceeds
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself? - CORRECT ANSWER -
Entire Contract provision
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S
dies 1 year later of natural causes. How much will the insurer pay the beneficiary? - CORRECT
ANSWER -$50,000
A policy loan is made possible by which of these life insurance policy features? - CORRECT
ANSWER -Cash value provision
What is the Suicide provision designed to do? - CORRECT ANSWER -safeguard the insurer from
an applicant who is contemplating suicide
