183) You are preparing for a second meeting with new dients to present your insurance proposal. Part of your presentation includes the illustrations generated by the insurance company's in-house software. Which of the following statements is correct concerning the use of illustrations? Term policy illustrations show the future policy dividends and the mortality deductions Term podley ilustrations show the premiums payable and the death benefit in each policy year Universal Life polyllustrations show the guaranteed policy a vlends and the mortality deductions Universal policy orations show the investment returns that the cent can rely on for performance 2 1581 You have been assigned to service an existing client. Upon review of their current coverage you discover the insured has had a 20 year Limited Pay Term 100 policy for 28 years. The client has had the policy for a long time and it has been some time since he has reviewed it. He asks you to explain the policy to him. Which of the following correctly describes the policy in this scenario? The client has coverage for life and must pay the permanent premiumsforlife The client cannot surrender the policy since the policy will not have a cash surrender values The client has coverage for life and he does not have to pay any more gremium The client no longer has coverage because the limited pay policy is paid up a Obj Martin, a licensed insurance agent. meets with his client Kim for an insurance review. Kim had purchased a 10-year term policy from Martin a few years ago and is now considering exercising the conversion option. Martin suggests Kim convert her 10-year term policy to either a Term-100 or whole life policy. When Kim asks what the difference is between the two types of policies, which of the following is the CORRECT response that Martin should provide Kim? Term:100 coverage typically has more stringent underwriting requirements but provides more comprehensive Coverage than whole life. Term 100 coverage would expire and leave the policyholder uninsured they lived pastage 100, whereas whole life coverage would still continue Whole life policies are generally more expensive than Term. 100 policies although some may allow policynolders to Share in the insurance companys surplus revenue Whole to polices offer fewer non forfeiture options than Term. 100 policies primarily due to smaller cash surrender Values Od 00) 4 Harold purchased a $250.000 universal life (UL) policy with a level death benefit plus account value option. Harold bought the policy 7 years ago and named his adult daughter Corinne as the benefidary. According to his most recent statement, the account value of his policy is $19.100 with an adjusted cost base (ACB) of $12,400. Harold has a marginal tax rate of 33. When he asks his insurance agent about the tax consequences of his UL policy, which of the following is the CORRECT response that the agent should provide Harold? Harold were to dle today Corinne would receive a $259 100 tax free benefit if Harold assigned his policy to Corinne he would have tax owing of 51.105.50 if Harold took a policyloan of $10.000, he would have tax owing of $3.300 If Harald were to die today. Corrine would receive a benefit of $252.231 after tax > Oby OC Oo