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Exam (elaborations)

XCEL CHAPTER 5 EXAM 2025 QUESTIONS AND ANSWERS

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Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose? - ANS Interest Option A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen? - ANS The insured's estate How are death benefits that are received by a beneficiary normally treated for tax purposes? - ANS Exempt from federal income taxes Which of the foll

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Institution
XCEL
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Uploaded on
August 9, 2025
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Written in
2025/2026
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XCEL CHAPTER 5 EXAM 2025
QUESTIONS AND ANSWERS




Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit

accumulate and receive only the monthly investment proceeds. Which settlement option

should she choose? - ANS Interest Option




A creditor would be allowed rights to life insurance policy proceeds if which of the following

beneficiaries is chosen? - ANS The insured's estate




How are death benefits that are received by a beneficiary normally treated for tax purposes? -

ANS Exempt from federal income taxes




Which of the following is NOT a life insurance settlement option? - ANS Extended term

option




1 @COPYRIGHT THEBRIGHT 2025/2026

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