XCEL CHAPTER 3 EXAM 2025
QUESTIONS AND ANSWERS
Which of the following actions is NOT possible with a Universal life policy - ANS Premiums
may be applied as a credit against income tax
If X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000 worth
of 10-year coverage on X under the same policy, the applicant should purchased - ANS A
whole life policy with other insured rider
All of these statements about Equity Indexed Life insurance are correct EXCEPT: - ANS Cash
value has a minimum rate of accumulation
Life insurance immediately creates an estate upon the death of an insured, which of the
following policies is characterized by a guaranteed minimum death benefit - ANS Credit Life
insurance
The investment gains from a Universal Life Policy usually go toward: - ANS The cash value
A Family Income Policy is a combination of - ANS Whole life and Decreasing Term Insurance
All of these are characteristics of an Adjustable Life policy EXCEPT: - ANS Face amount can be
adjusted using policy dividends
F needs life insurance that provides overage for only a limited amount of time with a death
benefit that changed regularly according to a schedule. What kind of policy is needed? -
ANS Decreasing term policy
1 @COPYRIGHT THEBRIGHT 2025/2026
, Which statement is TRUE regarding Variable Whole Life policy? - ANS A minimum
guaranteed Death benefit is provided
S is covered by whole life policy. Which insurance product can cover his children? - ANS Child
term rider
Which of these characteristics is consistent with Straight Life policy - ANS Premiums are
payable for as long as there is insurance coverage in force
Which of the following types of policies BEST identifies one in which the cash value may
fluctuate to reflect changing assumptions regarding morality cost, interest, and expense factors
- ANS Universal Life
Which of the following statements is CORRECT about the period in which a Term Policy can be
converted? - ANS It varies according to the contract
G purchased a Family income policy at age 40. The policy has a 2-year pay rider period. If G
were to die at age 50, how long would G's fly receive an income? - ANS 10 years
A Limited-Pay Life policy has: - ANS Premium payments limited to a specified number of
years
Which statement about a whole life policy is correct - ANS Cash value may be borrowed
against
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds,
but will still protect the principal with a mimimum level or risk. Which product would S be
advised to purchase? - ANS Equity index insurance
Under a graded Premium policy, the premiums - ANS Are lower during the policy's early
years
2 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
Which of the following actions is NOT possible with a Universal life policy - ANS Premiums
may be applied as a credit against income tax
If X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000 worth
of 10-year coverage on X under the same policy, the applicant should purchased - ANS A
whole life policy with other insured rider
All of these statements about Equity Indexed Life insurance are correct EXCEPT: - ANS Cash
value has a minimum rate of accumulation
Life insurance immediately creates an estate upon the death of an insured, which of the
following policies is characterized by a guaranteed minimum death benefit - ANS Credit Life
insurance
The investment gains from a Universal Life Policy usually go toward: - ANS The cash value
A Family Income Policy is a combination of - ANS Whole life and Decreasing Term Insurance
All of these are characteristics of an Adjustable Life policy EXCEPT: - ANS Face amount can be
adjusted using policy dividends
F needs life insurance that provides overage for only a limited amount of time with a death
benefit that changed regularly according to a schedule. What kind of policy is needed? -
ANS Decreasing term policy
1 @COPYRIGHT THEBRIGHT 2025/2026
, Which statement is TRUE regarding Variable Whole Life policy? - ANS A minimum
guaranteed Death benefit is provided
S is covered by whole life policy. Which insurance product can cover his children? - ANS Child
term rider
Which of these characteristics is consistent with Straight Life policy - ANS Premiums are
payable for as long as there is insurance coverage in force
Which of the following types of policies BEST identifies one in which the cash value may
fluctuate to reflect changing assumptions regarding morality cost, interest, and expense factors
- ANS Universal Life
Which of the following statements is CORRECT about the period in which a Term Policy can be
converted? - ANS It varies according to the contract
G purchased a Family income policy at age 40. The policy has a 2-year pay rider period. If G
were to die at age 50, how long would G's fly receive an income? - ANS 10 years
A Limited-Pay Life policy has: - ANS Premium payments limited to a specified number of
years
Which statement about a whole life policy is correct - ANS Cash value may be borrowed
against
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds,
but will still protect the principal with a mimimum level or risk. Which product would S be
advised to purchase? - ANS Equity index insurance
Under a graded Premium policy, the premiums - ANS Are lower during the policy's early
years
2 @COPYRIGHT THEBRIGHT 2025/2026
