XCEL CHAPTER 4A

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Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider?

Can be converted to permanent coverage without evidence of insurability

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

Which type of life insurance is normally associated with a Payor Benefit rider?

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?

Nothing

Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance?

Policyowner has the right to select the investment which will provide the greatest return

How are survivorship life insurance policies helpful in estate planning?

Provide funds to help pay taxes

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is

The shorter the payment period, the higher the premium

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 policy combines the flexibility of a universal life policy with investment choices?

Variable universal life policy

The least expensive option to pay off a 30-year mortgage balance would be

decreasing life term

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?

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?

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(n)

limited pay policy

Which of the following are the premium payments for a Universal life policy NOT used for?

separate account investments

What types of life insurance are normally used for key employee indemnification?

term, whole, and universal life insurance

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

A partial surrender is allowed in which of the following life policies?

universal life

Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?

universal life

A securities license is required for a life insurance producer to sell

variable life insurance


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