Xcel Chapter 4A Study Guide Test.

XCEL CHAPTER 4A STUDY GUIDE TEST. securities license is required for a life insurance producer to sell - CORRECT ANSWER variable life insurance Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this? - CORRECT ANSWER Child term rider Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because - CORRECT ANSWER the MEC tends to be an investment vehicle Which type of life insurance is normally associated with a Payor Benefit rider? - CORRECT ANSWER Juvenile insurance Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? - CORRECT ANSWER Nothing Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? - CORRECT ANSWER Universal life policy A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) - CORRECT ANSWER limited pay policy Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this? - CORRECT ANSWER equity index whole life What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? - CORRECT ANSWER last survivor life insurance