Arkansas Life Insurance Exam UPDATED
Study Guide QUESTIONS AND
CORRECT ANSWERS
Ordinary Life - CORRECT ANSWERS Individual life insurance that
includes many types of temporary and permanent insurance protection plans
written as individuals
Term Life - CORRECT ANSWERS Provides low cost insurance
protection for a specified period (or term) and pays a benefit only if the insured
dies during that period
Term Life - CORRECT ANSWERS The initial premium is lower than
for an equivalent amount of whole life insurance
Level Term - CORRECT ANSWERS Insurance provides a level amount
of protection for a specified period, after which the policy expires
Decreasing Term - CORRECT ANSWERS Polices are characterized by
benefit amounts that decrease gradually over the term of protection and have
level premiums
Decreasing Term - CORRECT ANSWERS Commonly used to protect
an insured's mortgage
Credit Life - CORRECT ANSWERS Sold to cover the outstanding
balance on a loan, is based on decreasing term insurance
Increasing Term - CORRECT ANSWERS Usually stated as specific
amounts or as a percentage of the original amount
, Increasing Term - CORRECT ANSWERS Insurance may be sold as a
separate policy, but is usually purchased as a cost of living rider to a policy
Term Life - CORRECT ANSWERS Policies are issued for a specified
period, defined in terms of years or age
Renewable - CORRECT ANSWERS The premiums for the renewal
period will be higher than the initial premium
Conversion - CORRECT ANSWERS The option to convert gives the
insured the right to convert or exchange their term policy for a whole life plan
without evidence of insurability
Whole Life - CORRECT ANSWERS Insurance is called this because it
provides permanent protection for one's entire life-from the date of issue to the
date of the insured's death
Whole Life - CORRECT ANSWERS Cash values and maturity at age
100
Cash Value - CORRECT ANSWERS Builds over the life of the policy.
This is because whole life insurance plans are credited with a certain guaranteed
rate of interest.
Cash Value - CORRECT ANSWERS Often regarded as a savings
element because it represents the amount of money the policyowner will receive
if the policy is ever surrendered
Whole Life Premiums - CORRECT ANSWERS The shorter the
payment period, the higher the premium.
Study Guide QUESTIONS AND
CORRECT ANSWERS
Ordinary Life - CORRECT ANSWERS Individual life insurance that
includes many types of temporary and permanent insurance protection plans
written as individuals
Term Life - CORRECT ANSWERS Provides low cost insurance
protection for a specified period (or term) and pays a benefit only if the insured
dies during that period
Term Life - CORRECT ANSWERS The initial premium is lower than
for an equivalent amount of whole life insurance
Level Term - CORRECT ANSWERS Insurance provides a level amount
of protection for a specified period, after which the policy expires
Decreasing Term - CORRECT ANSWERS Polices are characterized by
benefit amounts that decrease gradually over the term of protection and have
level premiums
Decreasing Term - CORRECT ANSWERS Commonly used to protect
an insured's mortgage
Credit Life - CORRECT ANSWERS Sold to cover the outstanding
balance on a loan, is based on decreasing term insurance
Increasing Term - CORRECT ANSWERS Usually stated as specific
amounts or as a percentage of the original amount
, Increasing Term - CORRECT ANSWERS Insurance may be sold as a
separate policy, but is usually purchased as a cost of living rider to a policy
Term Life - CORRECT ANSWERS Policies are issued for a specified
period, defined in terms of years or age
Renewable - CORRECT ANSWERS The premiums for the renewal
period will be higher than the initial premium
Conversion - CORRECT ANSWERS The option to convert gives the
insured the right to convert or exchange their term policy for a whole life plan
without evidence of insurability
Whole Life - CORRECT ANSWERS Insurance is called this because it
provides permanent protection for one's entire life-from the date of issue to the
date of the insured's death
Whole Life - CORRECT ANSWERS Cash values and maturity at age
100
Cash Value - CORRECT ANSWERS Builds over the life of the policy.
This is because whole life insurance plans are credited with a certain guaranteed
rate of interest.
Cash Value - CORRECT ANSWERS Often regarded as a savings
element because it represents the amount of money the policyowner will receive
if the policy is ever surrendered
Whole Life Premiums - CORRECT ANSWERS The shorter the
payment period, the higher the premium.
