LLQP Insurance Practice Questions

Aaliyah is a 37-year-old account manager at a large pharmaceutical company. She earns $300,000 a year plus bonuses. She meets with Theo, an insurance agent, to review her life insurance needs. Theo deduces that Aaliyah needs a $250,000 universal life (UL) insurance policy. Aaliyah agrees but states that she wants to keep her premiums low. Which of the following UL death benefit options would BEST suit her needs?

• AA. Level death benefit.
• BB. Level death benefit plus account value.
• CC. Level death benefit plus cumulative premiums.
• DD. Indexed death benefit.

Svetlana is a 45-year-old single mother with two children: Georgi 17; and Ingrid 13. The children's father, Vladimir, has a serious gambling problem and only visits them sporadically. Vladimir's younger brother Sergei, on the other hand, is a dependable and helpful uncle who helps Svetlana regularly with the children. Svetlana meets with Robert, an insurance agent to review her life insurance needs because she wants to make sure that her children are taken care of if she were to die prematurely. Robert suggests that she purchase a $200,000 policy. Who should she name as a beneficiary?

• AA. Georgi and Ingrid but name Vladimir as a trustee.
• BB. Georgi and Ingrid but name Sergei as a trustee.
• CC. Sergei
• DD. Vladimir

Anita is a 50-year-old woman who is thinking of purchasing a $150,000 permanent life insurance policy to pay for the capital gains tax that will be payable on her country home upon her death. She had purchased the home twelve years ago and wants to bequeath the property to her niece when she dies. Which of the following features about a permanent insurance policy is TRUE?

• AA. The coverage ends when Anita turns 100.
• BB. The premiums will remain level for the duration of the contract.
• CC. The policy cannot be cancelled by Anita.
• DD. Anita must contact the insurer if there is a change in the insurability.

Jasper owns TeleVida, a successful production company with over 50 employees. He wants to expand the company by opening an office in another province. Jasper needs to take out a $500,000 20-year loan to make this expansion happen. However, he wants to make sure that if hedies while there's an outstanding balance on the loan, the balance will be paid in full by the insurance company.

• AA. 20-year decreasing term life insurance.
• BB. 20-year term life insurance.
• CC. Term-100 life insurance policy.
• DD. Universal life insurance policy.

Ten years ago, Anastasia purchased a $125,000 10-year term renewable life insurance policy. Her insurance need has not changed, and she is still in good health. She asks her insurance agent Raphael what she should do.

• AA. Renew her current policy at the same rate.
• BB. Renew the policy at an increased rate.
• CC. Renew her policy and restart the incontestability period.
• DD. Shop around for a better rate.

Bethenny meets with Harrison, an insurance agent, to review her life insurance needs. Bethenny is a single mother of a 3-year-old daughter named Emma. Bethenny's main concern is that Emma istaken care of financially if Bethenny were to die prematurely. Emma's father Steve suffers from chronic alcoholism and is homeless. He has not been present in Emma's day-to-day life. After careful analysis, Harrison suggests that Bethenny purchase a $250,000 20-year term insurance policy. Given Bethenny's situation, who should she name as a beneficiary on her policy?

• AA. Her estate.
• BB. Emma.
• CC. A trustee.
• DD. Steve.

Six years ago, when Kacey was working as an active firefighter, she purchased a $200,000 30-year term life insurance policy. At the time, the insurance company rated her policy. Recently, she changed roles and now works for the fire department's public relations office, answering media calls and filling out paperwork. She meets with her insurance agent, Bernice, to ask if the insurer would consider reducing her premiums.

• AA. The premiums cannot be increased once the policy is issued.
• BB. The insurer cannot reduce the premium, but Kacey can apply for a new policy at a lower premium.
• CC. The premiums can be reduced only if the policy has been in force for more than two years.
• DD. Her premiums can be reduced since she is no longer a firefighter.