Exam FX Life Insurance Basics questions with answers

Exam FX Life Insurance Basics |\ |\ |\ |\ |\




questions with answers |\ |\




survivor protection - CORRECT ANSWERS ✔✔provides necessary
|\ |\ |\ |\ |\ |\ |\


funds for survivors to maintain their current lifestyle
|\ |\ |\ |\ |\ |\ |\




estate creation - CORRECT ANSWERS ✔✔is created by the
|\ |\ |\ |\ |\ |\ |\ |\ |\


purchase of life insurance |\ |\ |\




cash accumulation - CORRECT ANSWERS ✔✔whole life policies
|\ |\ |\ |\ |\ |\ |\




liqudity - CORRECT ANSWERS ✔✔policies cash values can be
|\ |\ |\ |\ |\ |\ |\ |\ |\


borrowed against at any time |\ |\ |\ |\




estate conversion - CORRECT ANSWERS ✔✔proceeds from life
|\ |\ |\ |\ |\ |\ |\ |\


insurance many be used to pay inheritance and federal taxes
|\ |\ |\ |\ |\ |\ |\ |\ |\




human life value approach - CORRECT ANSWERS ✔✔estimates
|\ |\ |\ |\ |\ |\ |\ |\


income loss to the family in the event of the insureds death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\




needs approach - CORRECT ANSWERS ✔✔determined by the
|\ |\ |\ |\ |\ |\ |\ |\


financial needs a family will have after insureds death
|\ |\ |\ |\ |\ |\ |\ |\




buy sell funding - CORRECT ANSWERS ✔✔determines what will
|\ |\ |\ |\ |\ |\ |\ |\ |\


be done with a business if the owner dies or becomes disabled
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\

, cross purchase - CORRECT ANSWERS ✔✔each business partner
|\ |\ |\ |\ |\ |\ |\ |\


buys a policy on the other partner
|\ |\ |\ |\ |\ |\




entity purchase - CORRECT ANSWERS ✔✔the partnership buys
|\ |\ |\ |\ |\ |\ |\ |\


the policies on the partners
|\ |\ |\ |\




stock purchase - CORRECT ANSWERS ✔✔privately owned
|\ |\ |\ |\ |\ |\ |\


stockholders buy policies on each of the other stockholders |\ |\ |\ |\ |\ |\ |\ |\




stock redemption - CORRECT ANSWERS ✔✔the corporation buys
|\ |\ |\ |\ |\ |\ |\ |\


one policy on each shareholder
|\ |\ |\ |\




key person insurance - CORRECT ANSWERS ✔✔pays to the
|\ |\ |\ |\ |\ |\ |\ |\ |\


business when a key employee dies |\ |\ |\ |\ |\




participating policy - CORRECT ANSWERS ✔✔annual dividends |\ |\ |\ |\ |\ |\ |\


are paid to the policy holder
|\ |\ |\ |\ |\




nonparticipating policy - CORRECT ANSWERS ✔✔actual cost of |\ |\ |\ |\ |\ |\ |\ |\


providing the insurance |\ |\




fixed life - CORRECT ANSWERS ✔✔guarantied minimums are
|\ |\ |\ |\ |\ |\ |\ |\


stated in the contract |\ |\ |\




variable life - CORRECT ANSWERS ✔✔cash value accumulates
|\ |\ |\ |\ |\ |\ |\ |\


depending on stocks |\ |\