XCEL Chapter 4 Life Insurance
Policies - Provisions, Options and
Riders
Which statement regarding whole life insurance is
accurate? - CORRECT ANSWERS ✔✔Insurance
coverage can continue for life
When a ten year renewable term life insurance policy
issued at age 45 is renewed, the premium rate will be the
current rate for - CORRECT ANSWERS ✔✔Ten year
term insurance for a person aged 55
When would evidence of insurability be required for a
person already covered with a variable universal life
policy? - CORRECT ANSWERS ✔✔When the death
benefit is increased
Assets that back the non-guaranteed values of variable
life insurance products are held in which account? -
CORRECT ANSWERS ✔✔Separate account set up by
the insurer
Which of these statements accurately portrays an
adjustable life insurance policy? - CORRECT ANSWERS
✔✔Policy can alternate between forms of term and whole
life insurance
, XCEL Chapter 4 Life Insurance
Policies - Provisions, Options and
Riders
John received a one-time distribution of $50,000 from his
modified endowment contract (MEC). Prior to that, the
contact's cash value was $150,000, the contract
investment amount was $100,000, and the death benefit
was $500,000. What percentage of the $50,000
distribution was taxable as ordinary income? - CORRECT
ANSWERS ✔✔100%
How long does protection normally extend to under a
limited pay whole life policy? - CORRECT ANSWERS
✔✔Until age 100
When can a life insurance policy be issued WITHOUT the
insured's consent? - CORRECT ANSWERS ✔✔When a
parent purchases a policy on the life of a minor child
Which of the following is a TRUE statement regarding
universal life insurance? - CORRECT ANSWERS
✔✔Policy indicates how much of each premium is used
toward company expenses
All of these are considered feature of whole life insurance
EXCEPT - CORRECT ANSWERS ✔✔Initial premium is
lower than for an equivalent amount of term insurance
Policies - Provisions, Options and
Riders
Which statement regarding whole life insurance is
accurate? - CORRECT ANSWERS ✔✔Insurance
coverage can continue for life
When a ten year renewable term life insurance policy
issued at age 45 is renewed, the premium rate will be the
current rate for - CORRECT ANSWERS ✔✔Ten year
term insurance for a person aged 55
When would evidence of insurability be required for a
person already covered with a variable universal life
policy? - CORRECT ANSWERS ✔✔When the death
benefit is increased
Assets that back the non-guaranteed values of variable
life insurance products are held in which account? -
CORRECT ANSWERS ✔✔Separate account set up by
the insurer
Which of these statements accurately portrays an
adjustable life insurance policy? - CORRECT ANSWERS
✔✔Policy can alternate between forms of term and whole
life insurance
, XCEL Chapter 4 Life Insurance
Policies - Provisions, Options and
Riders
John received a one-time distribution of $50,000 from his
modified endowment contract (MEC). Prior to that, the
contact's cash value was $150,000, the contract
investment amount was $100,000, and the death benefit
was $500,000. What percentage of the $50,000
distribution was taxable as ordinary income? - CORRECT
ANSWERS ✔✔100%
How long does protection normally extend to under a
limited pay whole life policy? - CORRECT ANSWERS
✔✔Until age 100
When can a life insurance policy be issued WITHOUT the
insured's consent? - CORRECT ANSWERS ✔✔When a
parent purchases a policy on the life of a minor child
Which of the following is a TRUE statement regarding
universal life insurance? - CORRECT ANSWERS
✔✔Policy indicates how much of each premium is used
toward company expenses
All of these are considered feature of whole life insurance
EXCEPT - CORRECT ANSWERS ✔✔Initial premium is
lower than for an equivalent amount of term insurance
