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Webce exam (actual exam)questions,answers 2024 – 2025
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Webce exam (actual exam)questions,answers 2024 – 2025
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Webce exam (actualexam)questions,answers 2024 – 2025
A disadvantage to using a conventional deferred annuity to fund late-life long-
term care needs is that the contract must be annuitized, and payments must be
made over a stated number of years or for life.
A) True
B) False - ANSWERS-B) False
A deferred annuity does not have to be annuitized. Owners can access all or a
portion of the contract's funds through lump-sum or partial withdrawals.
However, withdrawals do not receive the same tax-advantaged treatment that
annuitiation is given.
All of the following apply to life insurance policies that accelerate benefits for
both chronic illness and qualified long-term care EXCEPT:
,A) To qualify for for the accelerated benefit, the insured must be unable to
perform at least two ADLs or suffer from severe cognitive impairment.
B) The benefit is provided through accelerating payment of the policy's death
benefit.
C) The policyowner can elect to accelerate all, some, or none of the available
benefit if the insured qualifies.
D) The benefit must be paid as a reimbursement benefit, not an indemnity
benefit. - ANSWERS-D) The benefit must be paid as a reimbursement benefit, not
an indemnity benefit.
Accelerated benefits for chronic illness must be paid out as an indemnity;
accelerated benefits for qualified long-term care can pay as either an indemnity
or as a reimbursement.
In a reverse mortgage, a homeowner receives money from the lender.
A) True
B) False - ANSWERS-A)True
The homeowner receives money from the lender based on the home's appraised
value. Collateral has already been established by the equity in the home.
All of the following are sound reasons for purchasing life insurance EXCEPT:
A) Ensuring the financial security of a spouse, children, and other family members
B) preserving an estate
, C) funding anticipated LTC expenses
D) clearing up outstanding debt owned by the decedent - ANSWERS-C) Funding
anticipated LTC expenses
An LTCI policy is more appropriate for meeting long-term care expenses than
purchasing a life insurance policy, which is better suited for providing financial
security for surviving family members
Because taking a withdrawal from the cash value of a life insurance policy is
always a taxable event, this technique should NOT be used to fund long-term care
needs.
A) True
B) False - ANSWERS-B) False
As long as the insurance policy meets the definition of an insurance policy meets
the definition of an insurance policy and not a MEC, a policy withdrawals are not
taxable unless and until the withdrawn amount exceeds premiums paid.
A hybrid annuity combines a fixed deferred annuity product with which of the
following?
A) life insurance
B) an HSA account
C) a long-term care rider
D) a tax-free - ANSWERS-C) A long-term care rider
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