LIFE INSURANCE EXAM 7 PRACTICE TEST 2026
QUESTIONS WITH CORRECT ANSWERS
◉ Single Premium Answer: premiums paid in one lump sum;
coverage continues to age 100
◉ General Characteristics (Flexible Premium) Answer: - types of
whole life insurance
- flexible premium
◉ Adjustable life (Flexible premium) Answer: - policyowner may
adjust the premium and premium- paying period, the face amount,
and the period of protection
- can be converted from term to whole life and vice versa
- cash value only develops if the premiums paid are more than the
cost of the policy
◉ Universal life (Flexible premium) Answer: - an insurance
component in the form of annually renewable term
- 2 death benefit options: options A level death benefits, and options
B- increasing death benefit
- can make partial surrender/ cash withdrawal
, ◉ Variable Life (other types of polices) Answer: - fixed premium,
minimum death benefits
- cash value and the actual amount of the death benefits are not
guaranteed
- assets in separate accounts
- agents must be dually licensed in insurance and in securities
◉ Combination Plans (other types of polices) Answer: - Joint life: -
premium is based on the joint average age of the insured ;death
benefit upon the first death only
- Survivorship Life: - premium is based on the joint average of the
insured; death benefit upon the last death
◉ Phases (Annuities) Answer: - accumulation (pay-in): payment
made into the annuity
- annuitization (pay-out): payment made to the annuitant from the
annuity
◉ parties (annuities) Answer: - annuitant: insured (must be a
person); policy issued on annuitant's life
- Beneficiary: will receive any amount contributed to annuity (plus
any gain) if annuitant dies during accumulation period
- Owner- has all rights to policy (usually annuitant); can be
corporation or trust
QUESTIONS WITH CORRECT ANSWERS
◉ Single Premium Answer: premiums paid in one lump sum;
coverage continues to age 100
◉ General Characteristics (Flexible Premium) Answer: - types of
whole life insurance
- flexible premium
◉ Adjustable life (Flexible premium) Answer: - policyowner may
adjust the premium and premium- paying period, the face amount,
and the period of protection
- can be converted from term to whole life and vice versa
- cash value only develops if the premiums paid are more than the
cost of the policy
◉ Universal life (Flexible premium) Answer: - an insurance
component in the form of annually renewable term
- 2 death benefit options: options A level death benefits, and options
B- increasing death benefit
- can make partial surrender/ cash withdrawal
, ◉ Variable Life (other types of polices) Answer: - fixed premium,
minimum death benefits
- cash value and the actual amount of the death benefits are not
guaranteed
- assets in separate accounts
- agents must be dually licensed in insurance and in securities
◉ Combination Plans (other types of polices) Answer: - Joint life: -
premium is based on the joint average age of the insured ;death
benefit upon the first death only
- Survivorship Life: - premium is based on the joint average of the
insured; death benefit upon the last death
◉ Phases (Annuities) Answer: - accumulation (pay-in): payment
made into the annuity
- annuitization (pay-out): payment made to the annuitant from the
annuity
◉ parties (annuities) Answer: - annuitant: insured (must be a
person); policy issued on annuitant's life
- Beneficiary: will receive any amount contributed to annuity (plus
any gain) if annuitant dies during accumulation period
- Owner- has all rights to policy (usually annuitant); can be
corporation or trust
