Kelly has a universal life policy with a face value of $500,000. The cash surrender value of the policy is $185,200 and Kelly has paid $131,000 in premiums. The NCPI is $77,000. What is the ACB of the policy?

Question 6 options:

	$131,000
	$77,000
	$54,000
	$208,000

Question 7 (1 point)

Kelly has a universal life policy with a face value of $500,000. She wants to keep her premiums low in the initial years. Later, when she is more settled in her life, she plans to deposit more money into her policy. What type of 'cost of insurance' option is best for her?

Question 7 options:

	yearly renewable term
	level
	it does not matter
	A or B

Question 8 (1 point)

Deepesh owns a $300,000 Whole Life policy he purchased in 1990. He has paid $24,000 in premiums and the NCPI is $4000. The CSV of the policy is $16,000. What is the policy's ACB?

Question 8 options:

	$8,000
	$24,000
	$12,000
	$20,000

Question 9 (1 point)

Ray has a limited-payment life policy with a face value of $250,000. The cash surrender value (CSV), of the policy is $62,100, and Ray has paid $49,700 in premiums. The NCPI is $28,900. If Ray surrenders the policy, how much of the cash surrender value must he declare as income when his income tax is filed?

Question 9 options:

	$62,100
	$12,400
	$41,300
	0

Question 10 (1 point)

Fatima has owned her participating whole life policy since 1978. The face value of the policy is $50,000. Currently the CSV is $29,000. She has paid $32,000 in premiums. If Fatima surrenders her policy today, how much would she receive?

Question 10 options:

	$32,000
	$3,000
	$29,000
	$21,000

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