Insurance License Training: Life Insurance
Policies ACTUAL QUESTIONS AND
CORRECT ANSWERS
Which of the following best describes annually renewable term insurance?
A. It requires proof of insurability at each renewal.
B. Neither the premium nor death benefit is affected by the insured's age.
C. It provides an annually death benefit.
D. It is level term insurance - Correct answers✔✔D. It is level term insurance
Accumulate - Correct answers✔✔Build up
Attained age - Correct answers✔✔the insured's age at the time the policy is renewed or replaced
Cash value - Correct answers✔✔a policy's savings element or living benefit
Deferred - Correct answers✔✔withheld or postponed until a specified time or event in the future
Endow - Correct answers✔✔to have the cash value of a whole life policy reach the contractual
face amount
Face amount - Correct answers✔✔the amount of benefit stated in the life insurance policy
Fixed life insurance products - Correct answers✔✔contracts that offer guaranteed minimum or
fixed benefits
, Lapse - Correct answers✔✔policy termination due to nonpayment of premium
Level premium - Correct answers✔✔the premium that does not change throughout the life of a
policy
Nonforfeiture values - Correct answers✔✔benefits in a life insurance policy that the policyowner
cannot lose even if the policy is surrendered or lapses
Policy maturity - Correct answers✔✔in life policies, the time when the face value is paid out
Securities - Correct answers✔✔Financial instruments such as stocks, bonds, and mutual funds
that are traded on a stock exchange.
Variable life insurance products - Correct answers✔✔contracts in which the cash values
accumulate based upon a specific portfolio of stocks without guarantees of performance
Term Insurance (Pure Life Insurance) - Correct answers✔✔a temporary protection because it
only provides coverage for a specific period of time. Provides the greatest amount of coverage
for the lowest premium, but has no cash value
whole life insurance - Correct answers✔✔provides lifetime protection, and includes a saving
element (or cash value). This policy endows at the age 100.
Level premium - Correct answers✔✔the premium for whole life policies is based on the issue
age; therefore, it remains the same throughout the life of policy
Policies ACTUAL QUESTIONS AND
CORRECT ANSWERS
Which of the following best describes annually renewable term insurance?
A. It requires proof of insurability at each renewal.
B. Neither the premium nor death benefit is affected by the insured's age.
C. It provides an annually death benefit.
D. It is level term insurance - Correct answers✔✔D. It is level term insurance
Accumulate - Correct answers✔✔Build up
Attained age - Correct answers✔✔the insured's age at the time the policy is renewed or replaced
Cash value - Correct answers✔✔a policy's savings element or living benefit
Deferred - Correct answers✔✔withheld or postponed until a specified time or event in the future
Endow - Correct answers✔✔to have the cash value of a whole life policy reach the contractual
face amount
Face amount - Correct answers✔✔the amount of benefit stated in the life insurance policy
Fixed life insurance products - Correct answers✔✔contracts that offer guaranteed minimum or
fixed benefits
, Lapse - Correct answers✔✔policy termination due to nonpayment of premium
Level premium - Correct answers✔✔the premium that does not change throughout the life of a
policy
Nonforfeiture values - Correct answers✔✔benefits in a life insurance policy that the policyowner
cannot lose even if the policy is surrendered or lapses
Policy maturity - Correct answers✔✔in life policies, the time when the face value is paid out
Securities - Correct answers✔✔Financial instruments such as stocks, bonds, and mutual funds
that are traded on a stock exchange.
Variable life insurance products - Correct answers✔✔contracts in which the cash values
accumulate based upon a specific portfolio of stocks without guarantees of performance
Term Insurance (Pure Life Insurance) - Correct answers✔✔a temporary protection because it
only provides coverage for a specific period of time. Provides the greatest amount of coverage
for the lowest premium, but has no cash value
whole life insurance - Correct answers✔✔provides lifetime protection, and includes a saving
element (or cash value). This policy endows at the age 100.
Level premium - Correct answers✔✔the premium for whole life policies is based on the issue
age; therefore, it remains the same throughout the life of policy
