PRIMERICA LIFE INSURANCE STUDY
GUIDE 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ Which is generally true regarding insureds who have earned preferred
status?
a. they keep a higher percentage of any interest earned on their policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums. Answer: b. their
premiums are lower- the insured is in excellent physical condition and
employs healthy lifestyles and habits
⩥ All of the following statements concerning the use of life insurance as
an Executive Bonus are correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
d. any type of insurance policy may be used.. Answer: c. the policy is
owned by the company.
⩥ An insured receives a monthly summary for his life insurance policy.
He notices that the cash value of the policy is significantly lower this
,month than it was last month. What type of policy does the insured
have?
a. variable
b. term
c. securities
d. stock. Answer: a. variable- life policies vary in value, as the name
suggests, because the value is based on the stocks that support the
policy. If a policyholder wants a more stable, reliable value, he/she
should invest in a fixed policy.
⩥ When an employer offers to give an employee a wage increase in the
amount of the premium on a new life insurance policy, this is called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association. Answer: b. executive bonus
⩥ In terms of Social Security, what is the interval spanning between the
day when the youngest child of a family turns 16 and before the
surviving spouse may receive retirement benefits?. Answer: Blackout
period- begins when the youngest child reaches the age of 16, and ends
when the surviving spouse qualifies for retirement benefits, as early as
age 60. No benefits are paid during this time.
,⩥ Life insurance may be used to pay state inheritance taxes and federal
estate taxes so that it is not necessary to sell off assets from the estate to
pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
d. survivorship insurnce. Answer: a. estate conservation- life insurance
may be used to pay state inheritance taxes and federal estate taxes so that
it is not necessary to sell off assets from the estate to pay these costs.
This is called estate conservation.
⩥ Which of the following applicants could the insurer charge a higher
rate and not be charge with unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that does not.
Answer: d. an applicant that smokes cigarettes as opposed to one that
does not
⩥ Partner A in a business buys a life insurance policy on Partner B to
protect herself against a financial loss if he should die. Two years after
the partnership is dissolved Partner B dies. Who will receive the death
benefit?. Answer: Partner A
, ⩥ Which of the following is NOT a type of information that needs to be
gathered in order to determine the value of someone's life when using
the needs approach?
a. mortgages
b. expenses
c. estimated longevity
d. outstanding debt. Answer: c. estimated longevity
⩥ An employee will be taxed on the cost of group life insurance paid by
the employer if the amount of coverage exceeds
a. $10,000
b. $15,000
c. $25,000
d. $50,000. Answer: d. $50,000
⩥ Which of the following would NOT fall into the category of costs
associated with death?
a. final medical expenses of the insured
b. day to day expenses of maintaining the family
c. the expense of a vacation for surviving family members
d. funeral expenses. Answer: c. the expense of a vacation for surviving
family members
GUIDE 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ Which is generally true regarding insureds who have earned preferred
status?
a. they keep a higher percentage of any interest earned on their policies
b. their premiums are lower
c. they can barrow higher amounts off of their policies
d. they can decide when to pay their monthly premiums. Answer: b. their
premiums are lower- the insured is in excellent physical condition and
employs healthy lifestyles and habits
⩥ All of the following statements concerning the use of life insurance as
an Executive Bonus are correct EXCEPT:
a. the employer pays a bonus to a selected employee to fund to policy
b. it is considered a non qualified employee benefit.
c. the policy is owned by the company
d. any type of insurance policy may be used.. Answer: c. the policy is
owned by the company.
⩥ An insured receives a monthly summary for his life insurance policy.
He notices that the cash value of the policy is significantly lower this
,month than it was last month. What type of policy does the insured
have?
a. variable
b. term
c. securities
d. stock. Answer: a. variable- life policies vary in value, as the name
suggests, because the value is based on the stocks that support the
policy. If a policyholder wants a more stable, reliable value, he/she
should invest in a fixed policy.
⩥ When an employer offers to give an employee a wage increase in the
amount of the premium on a new life insurance policy, this is called
a. aleatory contract
b. executive bonus
c. key person
d. a fraternal association. Answer: b. executive bonus
⩥ In terms of Social Security, what is the interval spanning between the
day when the youngest child of a family turns 16 and before the
surviving spouse may receive retirement benefits?. Answer: Blackout
period- begins when the youngest child reaches the age of 16, and ends
when the surviving spouse qualifies for retirement benefits, as early as
age 60. No benefits are paid during this time.
,⩥ Life insurance may be used to pay state inheritance taxes and federal
estate taxes so that it is not necessary to sell off assets from the estate to
pay these costs. This is called
a. estate conservation
b. estate creation
c. survivor protection
d. survivorship insurnce. Answer: a. estate conservation- life insurance
may be used to pay state inheritance taxes and federal estate taxes so that
it is not necessary to sell off assets from the estate to pay these costs.
This is called estate conservation.
⩥ Which of the following applicants could the insurer charge a higher
rate and not be charge with unfair discrimination?
a. an applicant that was born in another country
b. an applicant who is legally blind
c. an applicant who has been a victim of domestic abuse
d. an applicant that smokes cigarettes as opposed to one that does not.
Answer: d. an applicant that smokes cigarettes as opposed to one that
does not
⩥ Partner A in a business buys a life insurance policy on Partner B to
protect herself against a financial loss if he should die. Two years after
the partnership is dissolved Partner B dies. Who will receive the death
benefit?. Answer: Partner A
, ⩥ Which of the following is NOT a type of information that needs to be
gathered in order to determine the value of someone's life when using
the needs approach?
a. mortgages
b. expenses
c. estimated longevity
d. outstanding debt. Answer: c. estimated longevity
⩥ An employee will be taxed on the cost of group life insurance paid by
the employer if the amount of coverage exceeds
a. $10,000
b. $15,000
c. $25,000
d. $50,000. Answer: d. $50,000
⩥ Which of the following would NOT fall into the category of costs
associated with death?
a. final medical expenses of the insured
b. day to day expenses of maintaining the family
c. the expense of a vacation for surviving family members
d. funeral expenses. Answer: c. the expense of a vacation for surviving
family members
