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TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH INSURANCE
2 LATEST VERSIONS ACTUAL EXAM NEWEST 2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
LIFE SECTION 1 - ANSWER-LIFE SECTION 1
1) Sandra Timms, age 27, is advised by her producer to purchase
Life insurance to cover a 20-year-amortized $50,000 business-
improvement loan. Which of the following plans would adequately
protect Ms. Timms at the minimum premium outlay?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years - ANSWER-D—A
$50,000 Decreasing Term policy for 20 years
Explanation: The key here is "minimum premium". Term is the
most inexpensive type of coverage. Since Sandra's $50,000 loan
will be paid off over 20 years and the loan balance will decrease
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each year, Decreasing Term makes sense. Decreasing Term is
not renewable.
2) A 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity - ANSWER-B- Equity Indexed Annuity
3) John Livingston owns a 30-Pay Life policy that he purchased at
the age of 30. The cash value will equal the face amount of the
policy when he reaches the age of:
A- 60
B- 70
C- 100
D- 30 - ANSWER-C- 100
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Explanation: Limited Pay Life insurance policies such as Life Paid
Up at 65 or 20-Pay Life are simply variations of Whole Life
policies. The cash value will equal face amount of the policy (at
least) at the maturity of the policy, which is always age 100 on
Whole Life policies. These limited-pay policies are designed so
that the insured may pay his or her premiums faster and be "paid
up" at a certain age. However, just because the premiums are
paid up doesn't mean the policy has matured.
4) Which of the following is an example of a Limited-Pay Life
policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 - ANSWER-C- Life Paid-Up at Age
65
5) Which of the following policies provides the greatest amount of
protection for an insured's premium dollar as well as some cash
accumulation?
A- Annuity
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B- Whole Life
C- Term
D- Limited-Pay Life - ANSWER-B- Whole Life
If we had not mentioned cash accumulation, the answer would
have been Term. However, Term has no cash value, so the
answer is Whole Life, which is the most inexpensive type of
permanent insurance and is required to have a cash value after
the third policy year. Although Limited Pay Life is a type of Whole
Life, it is incorrect since it is usually quite expensive due to the
shortened pay-in period. Annuities have no cash value except the
money the annuitant paid in. Since there is no death benefit, no
protection is offered.
6) Which of the following individual policy conversions is usually
permitted without any evidence of insurability? - ANSWER-C-
Conversion from a Term policy to a Whole Life policy
7) Which of the following is NOT correct regarding Ordinary
Whole Life policies?
TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH INSURANCE
2 LATEST VERSIONS ACTUAL EXAM NEWEST 2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
LIFE SECTION 1 - ANSWER-LIFE SECTION 1
1) Sandra Timms, age 27, is advised by her producer to purchase
Life insurance to cover a 20-year-amortized $50,000 business-
improvement loan. Which of the following plans would adequately
protect Ms. Timms at the minimum premium outlay?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years - ANSWER-D—A
$50,000 Decreasing Term policy for 20 years
Explanation: The key here is "minimum premium". Term is the
most inexpensive type of coverage. Since Sandra's $50,000 loan
will be paid off over 20 years and the loan balance will decrease
,2|Page
each year, Decreasing Term makes sense. Decreasing Term is
not renewable.
2) A 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity - ANSWER-B- Equity Indexed Annuity
3) John Livingston owns a 30-Pay Life policy that he purchased at
the age of 30. The cash value will equal the face amount of the
policy when he reaches the age of:
A- 60
B- 70
C- 100
D- 30 - ANSWER-C- 100
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Explanation: Limited Pay Life insurance policies such as Life Paid
Up at 65 or 20-Pay Life are simply variations of Whole Life
policies. The cash value will equal face amount of the policy (at
least) at the maturity of the policy, which is always age 100 on
Whole Life policies. These limited-pay policies are designed so
that the insured may pay his or her premiums faster and be "paid
up" at a certain age. However, just because the premiums are
paid up doesn't mean the policy has matured.
4) Which of the following is an example of a Limited-Pay Life
policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 - ANSWER-C- Life Paid-Up at Age
65
5) Which of the following policies provides the greatest amount of
protection for an insured's premium dollar as well as some cash
accumulation?
A- Annuity
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B- Whole Life
C- Term
D- Limited-Pay Life - ANSWER-B- Whole Life
If we had not mentioned cash accumulation, the answer would
have been Term. However, Term has no cash value, so the
answer is Whole Life, which is the most inexpensive type of
permanent insurance and is required to have a cash value after
the third policy year. Although Limited Pay Life is a type of Whole
Life, it is incorrect since it is usually quite expensive due to the
shortened pay-in period. Annuities have no cash value except the
money the annuitant paid in. Since there is no death benefit, no
protection is offered.
6) Which of the following individual policy conversions is usually
permitted without any evidence of insurability? - ANSWER-C-
Conversion from a Term policy to a Whole Life policy
7) Which of the following is NOT correct regarding Ordinary
Whole Life policies?
