Team AF Legacy Secure Quiz

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| By Alison Anderson

Alison Anderson

Community Contributor

Quizzes Created: 16 | Total Attempts: 2,422

Questions: 10 | Attempts: 207 | Updated: Mar 21, 2023

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Test product knowledge on Legacy Secure and Legacy Secure SL.

Questions and Answers

1.

The key features listed on the Legacy Secure include all the following except ?
- A.
  
  Guaranteed protection for periods up to and including lifetime
- B.
  
  Preferred loans available
- C.
  
  Unlimited catch-up provision
- D.
  
  Liguidity Guarantee Rider
Correct Answer
B. Preferred loans available

Explanation
The Legacy Secure policy offers several key features, including guaranteed protection for periods up to and including lifetime, unlimited catch-up provision, and a Liquidity Guarantee Rider. However, it does not include the feature of preferred loans being available.

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2.

Under the Continuation of Payment Rider after approval of a claim for this benefit. The company may require proof of continuance of total disability. According to the policy, how often can they require proof?
- A.
  
  Every six months
- B.
  
  Never
- C.
  
  Not more than once a year after total disability has continued for two full years
- D.
  
  As often as medically deemed necessary after total disability has continued for one full year
Correct Answer
C. Not more than once a year after total disability has continued for two full years

Explanation
The policy states that the company may require proof of continuance of total disability, but only after the disability has continued for two full years. At that point, the company can require proof no more than once a year. This means that the company cannot require proof more frequently than once a year, even if the disability continues for a longer period of time.

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3.

Which rider could be available on a Legacy Secure SL that would allow the customers to terminate their policy to reclaim their original premium payments?
- A.
  
  Estate Liquidity Rider
- B.
  
  Coverage Protection Rider
- C.
  
  Full Surrender Charge Adjustment Rider
- D.
  
  Policy Split Option
Correct Answer
A. Estate Liquidity Rider

Explanation
The Estate Liquidity Rider is the correct answer because it allows customers to terminate their policy and reclaim their original premium payments. This rider is designed to provide liquidity to the policyholder's estate upon their death, allowing beneficiaries to access the funds immediately. By selecting this rider, customers have the option to cancel their policy and receive their premium payments back, providing them with financial flexibility and control over their policy.

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4.

Under the new term conversion rules you are no longer able to convert a TrueTerm policy to a Legacy Secure. True or False?
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Under the new term conversion rules, you are still able to convert a TrueTerm policy to a Legacy Secure. Therefore, the correct answer is False.

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5.

Sam is a 40 year old male, preferred non-smoker, $250,000 coverage, coverage protection guarantee (premium designation), lifetime guarantee, pay to age 65 (annual) and no riders included.What can Sam surrender his policy for when he is age 77 if pays the coverage protection premium to age 65?
- A.
  
  $9009.30
- B.
  
  0
- C.
  
  $81,144.75 based on the current rates
- D.
  
  $81,444.75 guaranteed
Correct Answer
D. $81,444.75 guaranteed

Explanation
Sam can surrender his policy for $81,444.75 guaranteed when he is age 77 if he pays the coverage protection premium to age 65.

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6.

Which of the following are target markets for Legacy Secure?
- A.
  
  Individuals seeking long-term death benefit guarantees in a flexible premium, fixed intereest rate product
- B.
  
  Appropriate vehicle for a buy/sell agreement
- C.
  
  Appropriate vehicle for Key Person Insurance
- D.
  
  All of the above
Correct Answer
D. All of the above

Explanation
The correct answer is "All of the above". Legacy Secure is suitable for individuals seeking long-term death benefit guarantees in a flexible premium, fixed interest rate product. It is also an appropriate vehicle for a buy/sell agreement and Key Person Insurance. Therefore, all the options mentioned in the question are target markets for Legacy Secure.

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7.

On a Children's Term Rider when any child on the rider reaches Age 25 they can convert this coverage to 5X the face amount of the rider and have their own policy without proof of insurablility. What is/are the options they have as to what kind of policy this will be going forward?
- A.
  
  Term
- B.
  
  Term and Permanent
- C.
  
  Permanent
- D.
  
  AWLA only
Correct Answer
C. Permanent

Explanation
When a child on the Children's Term Rider reaches age 25, they have the option to convert their coverage to a Permanent policy. This means that they can have their own policy without the need for proof of insurability. The Permanent policy provides long-term coverage and typically includes a cash value component. This option allows the child to continue their coverage beyond the term period and have a policy that lasts for their lifetime.

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8.

In question number 7 when the child converts to his or her own policy the underwriting class will be "standard smoker".
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
When the child converts to his or her own policy, the underwriting class will be "standard smoker" because they will be considered as a smoker based on their smoking habits. This means that they will be charged higher premiums compared to non-smokers.

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9.

The Premium load for Legacy Secure and Legacy Secure SL is...
- A.
  
  There is no premium load
- B.
  
  2%
- C.
  
  5%
- D.
  
  6%
Correct Answer
D. 6%

Explanation
The premium load for Legacy Secure and Legacy Secure SL is 6%.

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10.

Legacy Secure SL is written primarily to allow families to pay estate taxes. To write this policy only one of the two people that the policy is written on needs to be insurable.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is true because Legacy Secure SL is designed specifically for families to pay estate taxes. This implies that the policy is meant to provide financial support to the beneficiaries in order to cover the estate taxes upon the death of the insured individuals. Additionally, the statement mentions that only one of the two people that the policy is written on needs to be insurable, suggesting that the policy is flexible in terms of the insurability requirements for the individuals involved.

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Current Version
Mar 21, 2023

Quiz Edited by
ProProfs Editorial Team
Feb 03, 2014

Quiz Created by
Alison Anderson

Team Af Legacy Secure Quiz

The key features listed on the Legacy Secure include all the following except ?

Under the Continuation of Payment Rider after approval of a claim for this benefit. The company may require proof of continuance of total disability. According to the policy, how often can they require proof?

Which rider could be available on a Legacy Secure SL that would allow the customers to terminate their policy to reclaim their original premium payments?

Under the new term conversion rules you are no longer able to convert a TrueTerm policy to a Legacy Secure. True or False?

Sam is a 40 year old male, preferred non-smoker, $250,000 coverage, coverage protection guarantee (premium designation), lifetime guarantee, pay to age 65 (annual) and no riders included.What can Sam surrender his policy for when he is age 77 if pays the coverage protection premium to age 65?

Which of the following are target markets for Legacy Secure?

On a Children's Term Rider when any child on the rider reaches Age 25 they can convert this coverage to 5X the face amount of the rider and have their own policy without proof of insurablility. What is/are the options they have as to what kind of policy this will be going forward?

In question number 7 when the child converts to his or her own policy the underwriting class will be "standard smoker".

The Premium load for Legacy Secure and Legacy Secure SL is...

Legacy Secure SL is written primarily to allow families to pay estate taxes. To write this policy only one of the two people that the policy is written on needs to be insurable.