XCEL Ohio Proctor ||197 QUESTIONS|| WITH CORRECT ANSWERS

Under a Modified Endowment Contract, what are the likely tax consequences? CORRECT ANS •Pre-death distributions will become taxable To receive proceeds from a death benefit, a minor CORRECT ANS •must have an appointed guardian Under a Modified Endowment Contract, what are the likely tax consequences? CORRECT ANS Pre-death distributions will become taxable To receive proceeds from a death benefit, a minor CORRECT ANS must have an appointed guardian A provision that allows a policy owner to temporarily give up ownership rights to secure a loan is called a(n) CORRECT ANS collateral assignment An annuitant is guaranteed to NOT outlive their benefits with a(n) CORRECT ANS Guaranteed lifetime withdrawal benefit Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? CORRECT ANS Variable universal policy Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires, CORRECT ANS the protection ends A life insurance policy that has premiums fully paid up within a st