Life Insurance Quiz

What are the different products we can offer to clients?

• Only EIUL because that is the best for the client

• Both EIUL and term

• Term, UL, Whole Life, EIUL & Fixed Annuity

• Mutual funds and stocks

What is the most important factor(s) to consider when designing an EIUL policy for a client?

• The client’s affordability

• The client’s needs

• The client’s goals

• All of the above

On the EIUL illustration the guaranteed values column eventually becomes zeros after some time, regardless of the amount and/or duration of the premium. The reason is that

• This represents the worst-case scenario of interest earned and fees charged, therefore resulting in lapse of the policy. This must be fully disclosed to clients at all times

• Client didn’t pay enough premium

• Client didn’t pay premium long enough

• This is not important at all so we don’t need to talk about it

On the EIUL illustration the current values column is

• Guaranteed by contract

• Guaranteed by the insurance company

• Not guaranteed and the actual results can be worse

• Not guaranteed and the actual results can be better or worse

Let's assume a policy has a $500,000 death benefit, Option A (Level). The client has a critical illness and files a claim. The company offers the client a Full Acceleration payout of $300,000. The client receives a check for $300,000. After a few years, the client passes away. How much money is left for the beneficiary?

• $200,000

• $0

• $500,000

• None of the above

With an EIUL, the Participation Rate is

• the percentage of positive index movement credited to the EIUL.

• the percentage of premium that is allocated for expenses.

• the number of participants in a group.

• any portion of the policy that is reinsured.

An EIUL plan needs to be monitored to make sure that

• the insurance company is not stealing any of the funds.

• it is not being replaced by another type of investment/insurance scheme.

• all commissions due are being paid.

• it is being funded at an appropriate premium level based on the earned interest rate.

When the interest credit depends only on the difference between the beginning and end index value each year, it is called

• dollar cost averaging.

• annual Point-to-Point crediting method.

• daily averaging crediting method.

• Universal Life Option B.

After years of putting his hard-earned money into an EIA with a lifetime income rider, the accumulation value of John’s EIA is $500,000 and the income value is $600,000. Assuming John wants to take out lifetime income to supplement his retirement at age 60 years old and the income rate is 5% annually, how much can John take home annually and for how long?

• $30,000 for 20 years

• $25,000 for life

• $30,000 for life

• $25,000 for 20 years

When will the new PFA associate receive the reimbursement towards their licensing/start-up costs?

• After minimum 3 sales are closed, issued, and delivered

• After minimum 3 sales of 9,000 points are closed, issued, and delivered

• After minimum 3 sales of 9,000 points are closed, issued, and delivered and the associate is licensed and appointed

• None of the above