NC Life Insurance Exam 2025/2026 ACTUAL COMPLETE REAL
EXAM QUESTIONS AND VERIFIED ANSWERS ( CORRECT
DETAILED & ELABORATED) GRADED A+ / 2025 BRAND NEW!!
A couple makes a combined income for $175,000 annually.Will
their Individual Retirement Plan (IRA) be tax deductible? -
ANSWER-No. If it is joint an dover $123,000 there is no
deduction.
How is the cash value effected on a policy loan vs. a policy
withdraw? - ANSWER-A policy loan preserves the cash value
and allows the policy to continue to grow as intended. A policy
loan does not have oy be paid back but the loan can NEVER
exceed the cash value. A policy withdraw takes from some of
the cash value of the policy and reduces life insurance
protection and cash value by the withdraw amount.
A policy owner does not have to repay a loan. If not paid back
the insurer will most likely surrender the policy and the
company will take its lended amount plus accrued interest from
the cash value. OR the Death Benefit will be reduced if not
,surrendered and they will take the amount of the outstanding
loan. - ANSWER-What happens if a policy loan is not repaid?
Withdrawals reduce the death benefit dollar-for-dollar.
Policyowners can withdraw funds as long as the policy has a
cash surrender value.
Insurers do not require policyowners to repay withdrawals. -
ANSWER-cash value withdrawals from a universal life
insurance policy?
prevents a life insurance policy from lapsing if the policyowner
fails to pay a premium - ANSWER-The automatic premium loan
(APL) provision does which of the following?
Premiums can increase or decrease to suit the policyowner's
changing needs. - ANSWER-With respect to adjustable life
insurance, which one of the following statements is correct?
either the contract's accumulated value or the amount of
premium the owner invested, whichever is greater - ANSWER-
Annuity contracts include a provision to pay a death benefit if
the owner or annuitant dies before the contract annuitizes.
What does this death benefit typically equal?
,John will continue to exclude from income the same portion of
each payment as
originally excluded by Lydia. - ANSWER-Lydia, age 65,
annuitizes a deferred
annuity and selects a 100 percent joint and survivor annuity
with John as the
joint annuitant. If Lydia dies before John after annuity
payments have begun, which one of the following most
correctly describes how the annuity payments will be taxed
when they are paid to John?
The contract owner reaches age 59 1/2. - ANSWER-The IRS
encourages the
use of annuities for long-term retirement savings.
Therefore, the IRS may
impose a penalty tax on any withdrawal that occurs
before which of the
following?
an annuity that is used in a tax-qualified retirement plan, such
as an IRA, TSA, or 403b or some plan that receives favorable
tax treatment. Money that is tax deductible going into an asset
is usually taxable coming out. Principle is taxable as well as
interest of every payout or "payment". - ANSWER-what is a
qualified annuity? Taxation of qualified annuities?
, As long as the policy's cash value covers the monthly
deductions for the cost of
insurance and expenses, Andrea's policy stays in force. -
ANSWER-Andrea
owns a variable universal life insurance policy. She has been
paying premiums
for the last ten years. The policy's cash value is now $75,000.
When her son enters college she stops making premium
payments and pays tuition instead. After her son graduates,
Andrea plans to start making premium payments again. Which
one of the following statements is most correct, assuming
Andrea wishes to keep the policy in force?
What is the cap on an IRA tax deduction that will provide NO
DEDUCTION for a
single person? - ANSWER-$74000
or more.
they add an expense load, which includes a safety margin
factor, to the net premium to produce the gross premium. -
ANSWER-Actuaries begin the process of calculating premium
rates by using mortality tables, which help predict future
experience but not with 100% certainly. How do actuaries
EXAM QUESTIONS AND VERIFIED ANSWERS ( CORRECT
DETAILED & ELABORATED) GRADED A+ / 2025 BRAND NEW!!
A couple makes a combined income for $175,000 annually.Will
their Individual Retirement Plan (IRA) be tax deductible? -
ANSWER-No. If it is joint an dover $123,000 there is no
deduction.
How is the cash value effected on a policy loan vs. a policy
withdraw? - ANSWER-A policy loan preserves the cash value
and allows the policy to continue to grow as intended. A policy
loan does not have oy be paid back but the loan can NEVER
exceed the cash value. A policy withdraw takes from some of
the cash value of the policy and reduces life insurance
protection and cash value by the withdraw amount.
A policy owner does not have to repay a loan. If not paid back
the insurer will most likely surrender the policy and the
company will take its lended amount plus accrued interest from
the cash value. OR the Death Benefit will be reduced if not
,surrendered and they will take the amount of the outstanding
loan. - ANSWER-What happens if a policy loan is not repaid?
Withdrawals reduce the death benefit dollar-for-dollar.
Policyowners can withdraw funds as long as the policy has a
cash surrender value.
Insurers do not require policyowners to repay withdrawals. -
ANSWER-cash value withdrawals from a universal life
insurance policy?
prevents a life insurance policy from lapsing if the policyowner
fails to pay a premium - ANSWER-The automatic premium loan
(APL) provision does which of the following?
Premiums can increase or decrease to suit the policyowner's
changing needs. - ANSWER-With respect to adjustable life
insurance, which one of the following statements is correct?
either the contract's accumulated value or the amount of
premium the owner invested, whichever is greater - ANSWER-
Annuity contracts include a provision to pay a death benefit if
the owner or annuitant dies before the contract annuitizes.
What does this death benefit typically equal?
,John will continue to exclude from income the same portion of
each payment as
originally excluded by Lydia. - ANSWER-Lydia, age 65,
annuitizes a deferred
annuity and selects a 100 percent joint and survivor annuity
with John as the
joint annuitant. If Lydia dies before John after annuity
payments have begun, which one of the following most
correctly describes how the annuity payments will be taxed
when they are paid to John?
The contract owner reaches age 59 1/2. - ANSWER-The IRS
encourages the
use of annuities for long-term retirement savings.
Therefore, the IRS may
impose a penalty tax on any withdrawal that occurs
before which of the
following?
an annuity that is used in a tax-qualified retirement plan, such
as an IRA, TSA, or 403b or some plan that receives favorable
tax treatment. Money that is tax deductible going into an asset
is usually taxable coming out. Principle is taxable as well as
interest of every payout or "payment". - ANSWER-what is a
qualified annuity? Taxation of qualified annuities?
, As long as the policy's cash value covers the monthly
deductions for the cost of
insurance and expenses, Andrea's policy stays in force. -
ANSWER-Andrea
owns a variable universal life insurance policy. She has been
paying premiums
for the last ten years. The policy's cash value is now $75,000.
When her son enters college she stops making premium
payments and pays tuition instead. After her son graduates,
Andrea plans to start making premium payments again. Which
one of the following statements is most correct, assuming
Andrea wishes to keep the policy in force?
What is the cap on an IRA tax deduction that will provide NO
DEDUCTION for a
single person? - ANSWER-$74000
or more.
they add an expense load, which includes a safety margin
factor, to the net premium to produce the gross premium. -
ANSWER-Actuaries begin the process of calculating premium
rates by using mortality tables, which help predict future
experience but not with 100% certainly. How do actuaries
