2/23/25, 12:21 PM Life & Health Insurance Exam Colorado (2025) comprehensive questions and verified answers ( detailed & elaborated) ACTU…
Life & Health Insurance Exam Colorado (2025)
comprehensive questions and verified answers (
detailed & elaborated) ACTUAL EXAM 2025
TEST!!
Save
Terms in this set (107)
-Ordinary (Straight) Life
Traditional Whole Life -Limited-Pay & Single-Premium Whole Life
-Adjustable Whole Life
-Until 100 or Death, whichever comes first
-Permanent Protection
-Rates & benefits based on law of large numbers
(Mortality Rate)
-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash
value goes up
-Insurer keeps the cash value if death to offset risk
Ordinary (Straight) Life
-Lowest net cost in long run
-Client has access to cash through cash surrender
or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---
TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy
maturity
https://quizlet.com/1009442893/life-health-insurance-exam-colorado-2025-comprehensive-questions-and-verified-answers-detailed-elaborated-a… 1/18
,2/23/25, 12:21 PM Life & Health Insurance Exam Colorado (2025) comprehensive questions and verified answers ( detailed & elaborated) ACTU…
-Premium paying period is shorter
-Cash value still equals face amount at age 100
Limited-Pay & Single- -20 pay life will be paid up in 20 years PL
Premium Whole Life -Life Paid up at age 65, will be paid up at 65 LP
-A single premium policy will have an immediate
cash value (1-pay life)---TEST
-Sold to clients with fluctuating incomes----TEST
Adjustable Whole Life---- -Combination of term and whole life----TEST
TEST -Coverage may not be increased without physical
exam---TEST
-Universal Whole life
Interest/Market Sensitive -Variable Whole life
Whole Life Products -Variable/Universal Whole life
-Equity-Indexed Life
-Guaranteed minimum interest rates
-Extreme flexibility regarding premium PMTs----
TEST
-Most flexible product
Universal Whole life
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount
+ cash value
-Cash value deposited into a separate account
-Requires FINRA series 6 or 7 to sell
-Used to be called NASD
-Regulated by SEC
-Regulated by FINRA (Financial Industry Regulatory
Variable Whole life
Authority)
-NYSE license not required
-Minimum death benefit (face amount) is
guaranteed---TEST
-Has fixed premium---TEST
-Requires Finra(series 6 or 7) licenses to sell
Variable/Universal Whole -Allows client to self-direct cash values into sub-
life account---TEST
-Flexible premium
https://quizlet.com/1009442893/life-health-insurance-exam-colorado-2025-comprehensive-questions-and-verified-answers-detailed-elaborated-a… 2/18
, 2/23/25, 12:21 PM Life & Health Insurance Exam Colorado (2025) comprehensive questions and verified answers ( detailed & elaborated) ACTU…
-cash value, where minimum death benefit is
guaranteed as well as the minimum earning on the
Equity-Indexed Life cash value in the general account
-Securities license is not required
-Fixed Premium
-Level Term
Term Life -Decreasing Term
-Increasing Term
-Premium goes up every year
-May be converted to whole life at current attained
General Features of Term
age regardless of health
Insurance
-May be renewable up to certain age without
physical
Both premium and face amount are level for period
Level Term
of time
-Face amount goes down but premium remains the
same
-Usually convertible to whole life regardless of
Decreasing Term
health
-Premium stays the same but cost increases as face
amount decreases
-Face amount goes up instead of down
-Allows beneficiary to receive the face amount +
Increasing Term
premiums or cash values
-Also known as Universal Life option B
-Renewable/Convertible to whole up to certain
date or age regardless of health
Special features of Term -Conversion based on current age
Insurance -May only convert to more expensive option
-Cannot convert to term
-Cannot convert to more coverage than you have
The premium for a return of premium policy is
Return of Premium under
generally more than that for a term policy, but less
Term
than that of a traditional whole life policy
https://quizlet.com/1009442893/life-health-insurance-exam-colorado-2025-comprehensive-questions-and-verified-answers-detailed-elaborated-a… 3/18
Life & Health Insurance Exam Colorado (2025)
comprehensive questions and verified answers (
detailed & elaborated) ACTUAL EXAM 2025
TEST!!
Save
Terms in this set (107)
-Ordinary (Straight) Life
Traditional Whole Life -Limited-Pay & Single-Premium Whole Life
-Adjustable Whole Life
-Until 100 or Death, whichever comes first
-Permanent Protection
-Rates & benefits based on law of large numbers
(Mortality Rate)
-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash
value goes up
-Insurer keeps the cash value if death to offset risk
Ordinary (Straight) Life
-Lowest net cost in long run
-Client has access to cash through cash surrender
or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---
TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy
maturity
https://quizlet.com/1009442893/life-health-insurance-exam-colorado-2025-comprehensive-questions-and-verified-answers-detailed-elaborated-a… 1/18
,2/23/25, 12:21 PM Life & Health Insurance Exam Colorado (2025) comprehensive questions and verified answers ( detailed & elaborated) ACTU…
-Premium paying period is shorter
-Cash value still equals face amount at age 100
Limited-Pay & Single- -20 pay life will be paid up in 20 years PL
Premium Whole Life -Life Paid up at age 65, will be paid up at 65 LP
-A single premium policy will have an immediate
cash value (1-pay life)---TEST
-Sold to clients with fluctuating incomes----TEST
Adjustable Whole Life---- -Combination of term and whole life----TEST
TEST -Coverage may not be increased without physical
exam---TEST
-Universal Whole life
Interest/Market Sensitive -Variable Whole life
Whole Life Products -Variable/Universal Whole life
-Equity-Indexed Life
-Guaranteed minimum interest rates
-Extreme flexibility regarding premium PMTs----
TEST
-Most flexible product
Universal Whole life
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount
+ cash value
-Cash value deposited into a separate account
-Requires FINRA series 6 or 7 to sell
-Used to be called NASD
-Regulated by SEC
-Regulated by FINRA (Financial Industry Regulatory
Variable Whole life
Authority)
-NYSE license not required
-Minimum death benefit (face amount) is
guaranteed---TEST
-Has fixed premium---TEST
-Requires Finra(series 6 or 7) licenses to sell
Variable/Universal Whole -Allows client to self-direct cash values into sub-
life account---TEST
-Flexible premium
https://quizlet.com/1009442893/life-health-insurance-exam-colorado-2025-comprehensive-questions-and-verified-answers-detailed-elaborated-a… 2/18
, 2/23/25, 12:21 PM Life & Health Insurance Exam Colorado (2025) comprehensive questions and verified answers ( detailed & elaborated) ACTU…
-cash value, where minimum death benefit is
guaranteed as well as the minimum earning on the
Equity-Indexed Life cash value in the general account
-Securities license is not required
-Fixed Premium
-Level Term
Term Life -Decreasing Term
-Increasing Term
-Premium goes up every year
-May be converted to whole life at current attained
General Features of Term
age regardless of health
Insurance
-May be renewable up to certain age without
physical
Both premium and face amount are level for period
Level Term
of time
-Face amount goes down but premium remains the
same
-Usually convertible to whole life regardless of
Decreasing Term
health
-Premium stays the same but cost increases as face
amount decreases
-Face amount goes up instead of down
-Allows beneficiary to receive the face amount +
Increasing Term
premiums or cash values
-Also known as Universal Life option B
-Renewable/Convertible to whole up to certain
date or age regardless of health
Special features of Term -Conversion based on current age
Insurance -May only convert to more expensive option
-Cannot convert to term
-Cannot convert to more coverage than you have
The premium for a return of premium policy is
Return of Premium under
generally more than that for a term policy, but less
Term
than that of a traditional whole life policy
https://quizlet.com/1009442893/life-health-insurance-exam-colorado-2025-comprehensive-questions-and-verified-answers-detailed-elaborated-a… 3/18
