Jr. CFT Preliminary Quiz

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I am agreeing to not share this quiz or the answers with any other Non Jr. CFTs or CFTs. I also understand this is a closed book quiz.

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What does FORM stand for?
*

2 points

Family, Occupation, Recreation, Motivation/Message

Fun, Opportunity, Recreation, Money

Family, Occupation, Recreation, Method

Finance, Occupation, Recreation, Motivation/Message

What does THTT stand for? *

2 points

Top trainer, Honest, Trust, Time

Top trainer, Helped, Trust, Time

Trust, Helped, Time, Thank You

Trust, Honest, Time, Thank You

We use THTT to edify our trainer/introduce them to our guest. The goal is to show the guest the trust that the trainee has in the trainer. *

2 points

True

False

Which properly describes indexed growth? *

2 points

It’s a growth strategy that allows a client to mirror the market on it’s gains, while protecting them from the downside of the market.

The client’s money is never directly placed in the index itself, rather, it’s held with an insurance company that will insure and guarantee the funds.

The client’s money is directly invested in the indices, and the insurance company protects the funds from downside risk.

It’s a security with protection on market downside risk.

a & b

a & d

What question might we ask to gauge someone’s interest on the recruiting side at the end of a presentation?
*

2 points

"What do you think?"

"Do you want to join?"

"Do you want to get started?"

“Just so I know where to take our conversation next, On a scale of 1-10, 1 being I never want to see you again (lol), 10 being I want to get started yesterday even if it were part time, where do you see yourself?”

What time window should an interview be scheduled within?
*

2 points

Whenever

24-48 hours

5 days

Within a week

If a prospect says a 9 or 10 on the recruiting question above, what is our next meeting? *

2 points

Interview

PFR

Workshop

Orientation Class

What does PFR stand for? *

2 points

Personal Financial Review

Personal Freedom Route

People Funding Retirement

What does CPSS stand for? *

2 points

Client Policy Set-up Sheet

Company Policies Standards Securities

Company Procedures for Setting up Sales

What does FNA stand for? *

2 points

Financial Needs Application

Financial Needs Analysis

Families Need Attention

Why might we use BOLT? *

2 points

To shop our someone's health insurance

To shop out credit card options

To set up a trust

To shop out someone's property and casualty insurance

Why might we use ROCKET MONEY? *

2 points

To help someone budget

To help someone get out debt

To help someone get a will

To help someone get final expense coverage

What website might we use to help someone debt snowball and avalanche? (check all that apply)
*

2 points

Credit Karma

Whats the cost

Bolt

Undebtit

Required

Which accurately describes Debtmerica? *

2 points

A debt consolidation company that deals with unsecured debts

A credit counseling company that deals with unsecured debts

A debt settlement company that deals with unsecured debts

They help negotiate peoples unsecured debts to a lower amount that can be paid back at 0% interest to debtmerica.

a & c

c & d

Which debts would Debtmerica not accept?
*

2 points

Credit Cards

Medical Debt

Private Student Loans

Federal Student Loans

Mortgage

Car Note

Personal Loans

d, e & f

c, d & f

If someone potentially needs legal resolution who might we also consider for debt?

2 points

Debtmerica 2.0

Optima

Allianz

Weightless Financial

Clear selection

What company would we use for a trust? (check all that apply) *

2 points

Prime Corporate

Inherit Guard

Freewill.com

Everest

Required

Which of the following is true when describing the differences between LTC and chronic illness rider?
*

2 points

They both have the same qualifying definition; you cannot perform 2/6 ADLs past 90 days.

Someone is in a car accident and breaks their hip. Another person is in a car accident and is permanently paralyzed. A chronic illness rider claim for the permanently paralyzed person would likely pay more than the person who breaks their hip.

Long Term Care is not dependent on how the illness/accident affects someones lifespan. As long as you cannot perform 2 of the 6 ADLs past 90 days, the claim will pay in qualifying states.

Chronic Illness claims will likely pay more if the illness affects someone's life expectancy

All the above are true

a, b & d

What are the three living benefits on Transamerica's Term policy?
*

2 points

Chronic, Critical, Terminal

Mortality, Morbidity, Terminal

Chronic, Critical, Cancerous

Which is not an advantage of an IUL? *

2 points

no 59.5 rule

Higher contribution limits than a ROTH

Tax free growth and distributions via policy loans

Account could lapse if the client does not fund it properly

Protection from market loss

What is a cap? *

2 points

What percentage of market returns the insurance company will credit your account.

The maximum amount of interest you could earn on a given index.

The lowest amount of interest you can be credited from a given index.

How often your account is credited interest.

To MEC a policy means the client put more premium into a policy than IRS guidelines will allow to keep it tax advantage. *

2 points

True

False

If I have a two year crediting strategy, I will see interest credited on my account on the 13th month.
*

2 points

True

False

If I have a 200% participation rate, and the market does a 14% return, I would be credited 7%.
*

2 points

True

False

Face amount = death benefit + cash value
*

2 points

True

False

If the client’s goal is to achieve maximum cash value, then it is okay to have someone fund at the minimum premium for the lifetime of the policy.
*

2 points

True

False

If a policy can hold $10,000 a year, and the client only puts in $6,000 year 1, they could put in $14,000 in year 2 even though the Guideline Annual Premium is $10,000.
*

2 points

True

False

The guideline annual premium on a policy is $20,000. Years 1-5, the client puts in $10,000. In year 6, they want to deposit $150,000 into the policy. The policy could hold this without becoming a MEC.
*

2 points

True

False

Who do we use to shop out annuities? *

2 points

LSPN

Crump

AMS

Bankrate

Who is Crump and why do we use them? *

2 points

They are a life insurance brokerage that helps us shop out life insurance for clients outside of our preferred providers

They are an annuity brokerage that helps us shop out annuities for our clients

They are a P and C brokerage that helps us shop out car insurance/ home insurance for our clients

None of the above

A client has a $200,000 mortgage, is $50,000 in debt, no children, makes $50,000 a year after tax, married, and needs $20,000 for final expenses. Calculate his insurable need using DIMEF.
*

2 points

1,070,000 so we would round it to 1,100,000

770,000

2,070,000 so we would round it to 1,200,000

$620,000

If done properly, how many times should you drop the seed for referrals before you ask for the referrals?
*

2 points

4- ETHOR, pre framing before you start the presentation, when you talk about how we get paid, homework given before leave / give data collection.

2 - ETHOR and pre framing

0 - Just ask them when you close them

Why is the IUL is not a short term product?
*

2 points

Costs are frontloaded into the policies

There is a cost of insurance that has to be paid so the policy needs to be funded properly and long enough so that the interest earned on the cash value is greater than the cost

Surrender charges are highest in the first 10 - 15 years depending on the company

If you pass away very early, your family will get more money than you put in.

a, b & c

a, b & d

You are taking a loan from the policy and loans aren't considered income. Therefore, you don't owe the taxes on the loan. *

2 points

True

False

When taking a withdrawal, you are only removing the interest. That money has already been taxed, therefore it is tax free. *

2 points

True

False

Which of the following accurately describe level term insurance?
*

2 points

It will expire after a period of time

Relatively inexpensive

it grows cash value

Premium will increase over time

a & c

a & b

Which is not an advantage of a permanent life insurance contract to you and your family?
*

2 points

Access to cash value through tax free loans and withdrawals

Tax free death benefit to your beneficiary

It is cheaper than term insurance

it avoids probate court

What are major benefits of contributing to a company sponsored 401K plan?
*

2 points

To get the company match (free money)

Most contributions can be tax deferred.

Protection from market loss

They tend to have lower fees compared to other investment accounts

a & c

a & b

What is the guarantee gain of an IUL with a zero percent floor? *

2 points

-2%

Uncapped

What type of insurance policy has a dividend? *

2 points

IUL

Whole

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