XCEL Practice Exams Questions with Correct
Answers 2025/2026
A upotential uclient, uage u40, uwould ulike uto upurchase ua uWhole uLife upolicy uthat uwill
uaccumulate ucash uvalue uat ua ufaster urate uin uthe uearly uyears uof uthe upolicy. uWhich uof
uthese ustatements umade uby uthe uproducer uwould ube ucorrect? u- uCORRECT uANSWER u-20-
Pay uLife uaccumulates ucash uvalue ufaster uthan uStraight uLife
A uvariable uinsurance upolicy: u- uCORRECT uANSWER u-does unot uguarantee ua ureturn uon uits
uinvestment uaccounts
A uRenewable uTerm uPolicy uis urenewable uat uthe uoption uof uthe: u- uCORRECT uANSWER u-Insured
Which uof uthese utypes uof ulife uinsurance uallows uthe upolicyowner uto uhave ulevel upremiums
uand uto ualso uchoose ufrom ua uselection uof uinvestment uoptions? u- uCORRECT uANSWER u-
Variable uLife
Which uof uthe ufollowing uactions uis uNOT upossible uwith ua uUniversal uLife upolicy? u- uCORRECT
uANSWER
-Premiums umay ube uapplied uas ua ucredit uagainst uincome utax
Which uprovision uallows uthe upolicyowner uto uchange ua uterm ulife upolicy uto ua upermanent
uone uwithout uproviding uproof uof ugood uhealth? u- uCORRECT uANSWER u-conversion
,What utype uof upolicy uwould uoffer ua u40-year uold uthe uquickest uaccumulation uof ucash
uvalue? u- uCORRECT uANSWER u-20-pay ulife
A u42-year-old uexecutive uwants uto upurchase ulife uinsurance uthat uwill uallow ufor uincreases uor
decreases uto ucoverage uas uhis/her uneeds uchange. uWhich uof uthe ufollowing upolicies uwill
ubest umeet uthis uneed? u- uCORRECT uANSWER u-Universal uLife
,J uis u35-years uold uand ulooking uto upurchase ua uwhole ulife uinsurance upolicy. uWhich uof
uthe ufollowing utypes uof upolicies uwill uprovide uthe umost urapid ugrowth uof ucash uvalue? u-
uCORRECT uANSWER u-20-pay uLife
All uof uthese uinsurance uproducts urequire uan uagent uto uhave uproper uFINRA usecurities
uregistration uin uorder uto usell uthem, uEXCEPT ufor: u- uCORRECT uANSWER u-Modified uWhole
uLife
All uof uthese uare ucharacteristics uof uan uAdjustable uLife upolicy, uEXCEPT: u- uCORRECT
uANSWER u-face uamount ucan ube uadjusted uusing upolicy udividends
What ukind uof uspecial uneed uwould ua upolicyowner urequire uwith uan uAdjustable uLife
uinsurance upolicy? u- uCORRECT uANSWER u-flexible upremiums
K upays uon ua u$20,000 u20-Year uEndowment upolicy ufor u10 uyears uand udies ufrom uan
uautomobile
accident. uHow umuch uwill uthe uinsurance ucompany upay uthe ubeneficiary? u- uCORRECT uANSWER
u-
$20,000 udeath ubenefit
What udoes ua uFace uAmount uPlus uCash uValue uPolicy usupposed uto upay uat uthe uinsured's
udeath? u- uCORRECT uANSWER u-Face uamount uplus uthe upolicy's ucash uvalue
Variable uLife uproducts urequire ua uproducer uto u- uCORRECT uANSWER u-hold ua uLife
uInsurance ulicense uand ua uSecurities ulicense
What ukind uof ulife upolicy ueither upays uthe uface uvalue uupon uthe udeath uof uthe uinsured uor
uwhen uthe uinsured ureaches uage u100? u- uCORRECT uANSWER u-whole ulife
Q uwould ulike uto upurchase u$100,000 uof upermanent uprotection uon uhis uwife uand u$50,000 uof
uTerm ucoverage uon uhimself uunder uthe usame upolicy. uWhat ukind uof upolicy ushould uQ
upurchase? u- uCORRECT uANSWER u-Whole ulife upolicy uwith uother uinsured urider
, Which uof uthe ufollowing utypes uof upolicies upays ua ubenefit uif uthe uinsured ugoes ublind? u-
uCORRECT uANSWER u-AD&D
All uof uthese ustatements uabout uEquity uIndexed uLife uInsurance uare ucorrect, uEXCEPT: u-
uCORRECT uANSWER u-The upremiums ucan ube ulowered uor uraised, ubased uon uinvestment
uperformance
M upurchases ua u$70,000 uLife uInsurance uPolicy uwith upremium upayments uof u$550 ua uyear
ufor uthe ufirst u5 uyears. uAt uthe ubeginning uof uthe usixth uyear, uthe upremium uwill uincrease
uto u$800 uper uyear ubut uwill uremain ulevel uthereafter. uThe uface uamount uwill uremain uat
u$70,000 uthroughout uthe ulife uof uthe
policy. uThe utype uof upolicy uthat uM uhas upurchased uis u- uCORRECT uANSWER u-Modified
uPremium uLife
Additional ucoverage ucan ube uadded uto ua uWhole uLife upolicy uby uadding ua(n): u- uCORRECT
uANSWER u- udecreasing uterm urider
M uhas uan uinsurance upolicy uthat ualso uhas uan uoutstanding upolicy uloan uat uthe utime uof uM's
udeath. uThe uinsurer uwill udeduct uthe uoutstanding uloan ubalance ufrom uthe: u- uCORRECT
uANSWER u-policy uproceeds
Which uprovision uprevents uan uinsurer ufrom uchanging uthe uterms uof uthe ucontract uwith uthe
policyowner uby ureferring uto udocuments unot ufound uwithin uthe upolicy uitself? u- uCORRECT
uANSWER u- uEntire uContract uprovision
S ubuys ua u$50,000 uwhole ulife upolicy uwith ua u$50,000 uAccidental uDeath uand
uDismemberment urider. uS udies u1 uyear ulater uof unatural ucauses. uHow umuch uwill uthe
uinsurer upay uthe ubeneficiary? u- uCORRECT
ANSWER u-$50,000
A upolicy uloan uis umade upossible uby uwhich uof uthese ulife uinsurance upolicy ufeatures? u-
uCORRECT uANSWER u-Cash uvalue uprovision
What uis uthe uSuicide uprovision udesigned uto udo? u- uCORRECT uANSWER u-safeguard uthe
Answers 2025/2026
A upotential uclient, uage u40, uwould ulike uto upurchase ua uWhole uLife upolicy uthat uwill
uaccumulate ucash uvalue uat ua ufaster urate uin uthe uearly uyears uof uthe upolicy. uWhich uof
uthese ustatements umade uby uthe uproducer uwould ube ucorrect? u- uCORRECT uANSWER u-20-
Pay uLife uaccumulates ucash uvalue ufaster uthan uStraight uLife
A uvariable uinsurance upolicy: u- uCORRECT uANSWER u-does unot uguarantee ua ureturn uon uits
uinvestment uaccounts
A uRenewable uTerm uPolicy uis urenewable uat uthe uoption uof uthe: u- uCORRECT uANSWER u-Insured
Which uof uthese utypes uof ulife uinsurance uallows uthe upolicyowner uto uhave ulevel upremiums
uand uto ualso uchoose ufrom ua uselection uof uinvestment uoptions? u- uCORRECT uANSWER u-
Variable uLife
Which uof uthe ufollowing uactions uis uNOT upossible uwith ua uUniversal uLife upolicy? u- uCORRECT
uANSWER
-Premiums umay ube uapplied uas ua ucredit uagainst uincome utax
Which uprovision uallows uthe upolicyowner uto uchange ua uterm ulife upolicy uto ua upermanent
uone uwithout uproviding uproof uof ugood uhealth? u- uCORRECT uANSWER u-conversion
,What utype uof upolicy uwould uoffer ua u40-year uold uthe uquickest uaccumulation uof ucash
uvalue? u- uCORRECT uANSWER u-20-pay ulife
A u42-year-old uexecutive uwants uto upurchase ulife uinsurance uthat uwill uallow ufor uincreases uor
decreases uto ucoverage uas uhis/her uneeds uchange. uWhich uof uthe ufollowing upolicies uwill
ubest umeet uthis uneed? u- uCORRECT uANSWER u-Universal uLife
,J uis u35-years uold uand ulooking uto upurchase ua uwhole ulife uinsurance upolicy. uWhich uof
uthe ufollowing utypes uof upolicies uwill uprovide uthe umost urapid ugrowth uof ucash uvalue? u-
uCORRECT uANSWER u-20-pay uLife
All uof uthese uinsurance uproducts urequire uan uagent uto uhave uproper uFINRA usecurities
uregistration uin uorder uto usell uthem, uEXCEPT ufor: u- uCORRECT uANSWER u-Modified uWhole
uLife
All uof uthese uare ucharacteristics uof uan uAdjustable uLife upolicy, uEXCEPT: u- uCORRECT
uANSWER u-face uamount ucan ube uadjusted uusing upolicy udividends
What ukind uof uspecial uneed uwould ua upolicyowner urequire uwith uan uAdjustable uLife
uinsurance upolicy? u- uCORRECT uANSWER u-flexible upremiums
K upays uon ua u$20,000 u20-Year uEndowment upolicy ufor u10 uyears uand udies ufrom uan
uautomobile
accident. uHow umuch uwill uthe uinsurance ucompany upay uthe ubeneficiary? u- uCORRECT uANSWER
u-
$20,000 udeath ubenefit
What udoes ua uFace uAmount uPlus uCash uValue uPolicy usupposed uto upay uat uthe uinsured's
udeath? u- uCORRECT uANSWER u-Face uamount uplus uthe upolicy's ucash uvalue
Variable uLife uproducts urequire ua uproducer uto u- uCORRECT uANSWER u-hold ua uLife
uInsurance ulicense uand ua uSecurities ulicense
What ukind uof ulife upolicy ueither upays uthe uface uvalue uupon uthe udeath uof uthe uinsured uor
uwhen uthe uinsured ureaches uage u100? u- uCORRECT uANSWER u-whole ulife
Q uwould ulike uto upurchase u$100,000 uof upermanent uprotection uon uhis uwife uand u$50,000 uof
uTerm ucoverage uon uhimself uunder uthe usame upolicy. uWhat ukind uof upolicy ushould uQ
upurchase? u- uCORRECT uANSWER u-Whole ulife upolicy uwith uother uinsured urider
, Which uof uthe ufollowing utypes uof upolicies upays ua ubenefit uif uthe uinsured ugoes ublind? u-
uCORRECT uANSWER u-AD&D
All uof uthese ustatements uabout uEquity uIndexed uLife uInsurance uare ucorrect, uEXCEPT: u-
uCORRECT uANSWER u-The upremiums ucan ube ulowered uor uraised, ubased uon uinvestment
uperformance
M upurchases ua u$70,000 uLife uInsurance uPolicy uwith upremium upayments uof u$550 ua uyear
ufor uthe ufirst u5 uyears. uAt uthe ubeginning uof uthe usixth uyear, uthe upremium uwill uincrease
uto u$800 uper uyear ubut uwill uremain ulevel uthereafter. uThe uface uamount uwill uremain uat
u$70,000 uthroughout uthe ulife uof uthe
policy. uThe utype uof upolicy uthat uM uhas upurchased uis u- uCORRECT uANSWER u-Modified
uPremium uLife
Additional ucoverage ucan ube uadded uto ua uWhole uLife upolicy uby uadding ua(n): u- uCORRECT
uANSWER u- udecreasing uterm urider
M uhas uan uinsurance upolicy uthat ualso uhas uan uoutstanding upolicy uloan uat uthe utime uof uM's
udeath. uThe uinsurer uwill udeduct uthe uoutstanding uloan ubalance ufrom uthe: u- uCORRECT
uANSWER u-policy uproceeds
Which uprovision uprevents uan uinsurer ufrom uchanging uthe uterms uof uthe ucontract uwith uthe
policyowner uby ureferring uto udocuments unot ufound uwithin uthe upolicy uitself? u- uCORRECT
uANSWER u- uEntire uContract uprovision
S ubuys ua u$50,000 uwhole ulife upolicy uwith ua u$50,000 uAccidental uDeath uand
uDismemberment urider. uS udies u1 uyear ulater uof unatural ucauses. uHow umuch uwill uthe
uinsurer upay uthe ubeneficiary? u- uCORRECT
ANSWER u-$50,000
A upolicy uloan uis umade upossible uby uwhich uof uthese ulife uinsurance upolicy ufeatures? u-
uCORRECT uANSWER u-Cash uvalue uprovision
What uis uthe uSuicide uprovision udesigned uto udo? u- uCORRECT uANSWER u-safeguard uthe
