1|Page
VIRGINIA LIFE AND HEALTH INSURANCE EXAM
REVIEW | ALL QUESTIONS AND CORRECT ANSWERS |
GRADED A+ | VERIFIED ANSWERS | LATEST VERSION
2025
If a universal life insurance policyowner chooses death benefit option 1, which of
the following correctly describes the death benefit?
a. The death benefit equals the policy's specified amount plus its cash value.
b. The death benefit increases as the cash value increases.
c. The death benefit will change based on the policy's underlying investments.
d. The death benefit will generally remain level but may vary based on the
amount of premiums actually paid. - (ANSWER)d. The death benefit will generally
remain level but may vary based on the amount of premiums actually paid.
Reason: Death benefit option 1, or a level death benefit means that the death
benefit paid to the life insurance policy's beneficiaries is fixed ahead of time, as
opposed to increasing as the policyholder ages
Fran has an annuity into which she is making monthly fixed premium deposits of a
specified amount and which she intends to use to supplement her income when
she retires in 15 years. The annuity is credited with the higher of a current or
guaranteed rate of interest. What type of policy does Fran most likely own?
a. immediate annuity
b. single-premium deferred annuity
,2|Page
c. fixed premium deferred annuity
d. variable deferred annuity - (ANSWER)c. fixed premium deferred annuity
Reason: With a fixed deferred annuity, a guaranteed interest rate is locked in for
an initial period. After that, interest rates may be adjusted periodically, generally
each year. Fixed deferred annuities also provide you with a guaranteed minimum
interest rate, regardless of market conditions.
A disability income benefit rider differs from a waiver of premium (WP) rider in
that, unlike the WP rider, the disability income benefit rider:
a. continues to pay benefits even if the insured recovers from the disability
b. provides a monthly income
c. does not require total disability for benefits to be payable
d. has no waiting period - (ANSWER)b. provides a monthly income
Reason: The disability income benefit contrasts with the waiver of premium rider,
which only waives the policy's premiums but provides no disability income.
Which of the following statements best describes an annuity's accumulation
period?
a. It is usually very long.
b. It is usually very short.
, 3|Page
c. It can be a very long period-up to many years-or it can be as short as one
month.
d. It ends at age 70'. - (ANSWER)c. It can be a very long period-up to many years-
or it can be as short as one month.
All the following statements regarding prepaid tuition plans are correct EXCEPT:
a. Prepaid tuition plans allow parents to lock in the cost of today's tuition, even if
inflation or tuition increases.
b. Prepaid tuition plans are typically open to both state residents and non-
residents.
c. Prepaid tuition plans typically limit a child's choice of colleges to in-state
schools.
d. Amounts contributed to prepaid tuition plans are available tax free when used
to pay for qualified tuition costs. - (ANSWER)b. Prepaid tuition plans are typically
open to both state residents and non-residents.
Reason: State pre-paid tuition plans are usually limited to state residents and
apply to in-state public universities or colleges.
All the following statements about increasing term insurance policies are correct
EXCEPT:
a. The premium is higher than that for a level term policy starting out with the
same face amount.
VIRGINIA LIFE AND HEALTH INSURANCE EXAM
REVIEW | ALL QUESTIONS AND CORRECT ANSWERS |
GRADED A+ | VERIFIED ANSWERS | LATEST VERSION
2025
If a universal life insurance policyowner chooses death benefit option 1, which of
the following correctly describes the death benefit?
a. The death benefit equals the policy's specified amount plus its cash value.
b. The death benefit increases as the cash value increases.
c. The death benefit will change based on the policy's underlying investments.
d. The death benefit will generally remain level but may vary based on the
amount of premiums actually paid. - (ANSWER)d. The death benefit will generally
remain level but may vary based on the amount of premiums actually paid.
Reason: Death benefit option 1, or a level death benefit means that the death
benefit paid to the life insurance policy's beneficiaries is fixed ahead of time, as
opposed to increasing as the policyholder ages
Fran has an annuity into which she is making monthly fixed premium deposits of a
specified amount and which she intends to use to supplement her income when
she retires in 15 years. The annuity is credited with the higher of a current or
guaranteed rate of interest. What type of policy does Fran most likely own?
a. immediate annuity
b. single-premium deferred annuity
,2|Page
c. fixed premium deferred annuity
d. variable deferred annuity - (ANSWER)c. fixed premium deferred annuity
Reason: With a fixed deferred annuity, a guaranteed interest rate is locked in for
an initial period. After that, interest rates may be adjusted periodically, generally
each year. Fixed deferred annuities also provide you with a guaranteed minimum
interest rate, regardless of market conditions.
A disability income benefit rider differs from a waiver of premium (WP) rider in
that, unlike the WP rider, the disability income benefit rider:
a. continues to pay benefits even if the insured recovers from the disability
b. provides a monthly income
c. does not require total disability for benefits to be payable
d. has no waiting period - (ANSWER)b. provides a monthly income
Reason: The disability income benefit contrasts with the waiver of premium rider,
which only waives the policy's premiums but provides no disability income.
Which of the following statements best describes an annuity's accumulation
period?
a. It is usually very long.
b. It is usually very short.
, 3|Page
c. It can be a very long period-up to many years-or it can be as short as one
month.
d. It ends at age 70'. - (ANSWER)c. It can be a very long period-up to many years-
or it can be as short as one month.
All the following statements regarding prepaid tuition plans are correct EXCEPT:
a. Prepaid tuition plans allow parents to lock in the cost of today's tuition, even if
inflation or tuition increases.
b. Prepaid tuition plans are typically open to both state residents and non-
residents.
c. Prepaid tuition plans typically limit a child's choice of colleges to in-state
schools.
d. Amounts contributed to prepaid tuition plans are available tax free when used
to pay for qualified tuition costs. - (ANSWER)b. Prepaid tuition plans are typically
open to both state residents and non-residents.
Reason: State pre-paid tuition plans are usually limited to state residents and
apply to in-state public universities or colleges.
All the following statements about increasing term insurance policies are correct
EXCEPT:
a. The premium is higher than that for a level term policy starting out with the
same face amount.
