Xcel Chapter 3:
D needs life insurance that provides coverage for only a limited amount of tie while also paying the lowest possible premium. What kind of policy is needed?
Level term
F needs life insurance that provides overage for only a limited amount of time with a death benefit that changed regularly according to a schedule. What kind of policy is needed?
Decreasing term policy
Which of the following statements is CORRECT about the period in which a Term Policy can be converted?
It varies according to the contract
A Limited-Pay Life policy has:
Premium payments limited to a specified number of years
Which of these characteristics is consistent with Straight Life policy
Premiums are payable for as long as there is insurance coverage in force
Which of the following actions is NOT possible with a Universal life policy
Premiums may be applied as a credit against income tax
What type of license insurance are credit policies issued as
Term
The investment gains from a Universal Life Policy usually go toward:
The cash value
The amount of coverage on a group credit life policy is limited to:
The insured total loan value
Which of the following characteristics is CORRECT about interest sensitive whole life
There is a flexible premium payment.
Which of the following types of Term Life policies most likely contains a Renewability feature?
10 year convertible term
G purchased a Family income policy at age 40. The policy has a 2-year pay rider period. If G were to die at age 50, how long would G's fly receive an income?
10 years
Life insurance immediately creates an estate upon the death of an insured, which of the following policies is characterized by a guaranteed minimum death benefit
Credit Life insurance
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
Decreasing term
K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before 65. K purchased which of the following types of policies
Endowment at age 65
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a mimimum level or risk. Which product would S be advised to purchase?
Equity index insurance
An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager?
Key person insurance
What kind of premium does a Whole Life policy have?
Level
Universal Life Policy is somethings referred to as an unbridled Life policy because the owner can see the interest earned, cost of insurance, and
Expense charges
All of these are characteristics of an Adjustable Life policy EXCEPT:
Face amount can be adjusted using policy dividends
Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death?
Joint Life
M purchases a $70,000 life insurance policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase of $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is:
Modified premium life
All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for:
Modified whole life
What type of life policy covers 2 people and pays upon the death of the last insured?
Survivorship
A life insurance policy that provides a policy owner with cash value along with a level face amount is called
Whole life
What kind of policy either pays the face value upon the death of the insured or when the insured reaches 100?
Whole life
N is a 40 year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection and be paid up a retirement. Which of these should N purchase?
30 pay life
A Family Income Policy is a combination of
Whole life and Decreasing Term Insurance
When is the face amount paid under a Joint Life and Survivor policy
upon death of the last insured
A term life insurance policy matures
upon the insured's death during the term of the policy
Which statement is TRUE regarding Variable Whole Life policy?
A minimum guaranteed Death benefit is provided
If X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000 worth of 10-year coverage on X under the same policy, the applicant should purchased
A whole life policy with other insured rider
Under a graded Premium policy, the premiums
Are lower during the policy's early years
A Whole Life Insurance Policy endows when the
Cash value equals the death benefit
All of these statements about Equity Indexed Life insurance are correct EXCEPT:
Cash value has a minimum rate of accumulation
Which statement about a whole life policy is correct
Cash value may be borrowed against
S is covered by whole life policy. Which insurance product can cover his children?
Child term rider
Which of the following types of permanent life insurance policies offers the highest initial cash value?
Single premium
Which of the following types of policies BEST identifies one in which the cash value may fluctuate to reflect changing assumptions regarding morality cost, interest, and expense factors
Universal Life
Which policy requires an agent to register with the NASD before selling?
Variable Life
