XCEL Chapter 4 Part 1
What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death?
last survivor life insurance
When a decreasing term policy is purchased, it contains a decreasing death benefit and...
level premiums
A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a...
limited pay policy
Which of the following are the premium payouts for a Universal life policy NOT used for?
separate account investments
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because...
the MEC tends to be an investment vehicle
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?
universal life policy
Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?
endowment policy
Level premium permanent insurance accumulates a reserve that will eventually...
equal the face amount of the policy
A life insurance policy written on one contract for two people in which it is payable upon the first death is called...
joint
Which type of life insurance is normally associated with Payor Benefit rider?
juvenile insurance
An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called...
partial surrender
Under a Modified Endowment Contract, what are the likely tax consequences?
pre-death distributions will become taxable
How are survivorship life insurance policies helpful in estate planning?
provide funds to help pay taxes
What does the term "level" in Level Term describe?
the face amount
A partial surrender is allowed in which of the following life policies?
universal life
A Modified Endowment Contract (MEC) is best described as...
a life insurance contract which accumulates cash values higher than the IRS will allow
A single premium cash value policy can be described as...
a policy that is paid up after only one payment
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?
child term rider
What happens to the coverage of a children's term rider when that child reaches a certain specified age?
coverage is eliminated
A securities license is required for a life insurance provider to sell...
variable life insurance
