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NJ Life Insurance Questions and Correct
Answers/ Latest Update / Already Graded
Life insurance is the most practical means of meeting obligations
arising from a premature death because...
Ans: it creates an immediate estate
Cash value of a life insurance policy
Ans: can be used for loans or later as retirement income
Money taken out of a Modified Endowment Contract
Ans: May be subject to unfavorable tax rules
Limited Pay Life Policy
Ans: A life insurance policy that continues to provide
protection after the premium period ended
Convertible Term Policy
Ans: Type of policy that can be changed from one that does
not accumulate cash values to one that does
All rights reserved © 2025/ 2026 |
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Percentage test that must be satisfied for participation when a firm
establishes a contributory group life policy
Ans: 75%
Robert buys a life annuity with ten years certain which pays him $1,200
a month. After 5 years he dies, how much does beneficiary receive?
Ans: $72,000
(Monthly payment x #months)
Person with best chance of being issued a standard life insurance policy
Ans: Someone whose job does not involve risk
Renewable term life insurance
Ans: The company must renew the policy on the renewal date
regardless of the insurance
It guarantees an insured's insurabilty
It generally has a fixed premium for a specified period
All rights reserved © 2025/ 2026 |
NJ Life Insurance Questions and Correct
Answers/ Latest Update / Already Graded
Life insurance is the most practical means of meeting obligations
arising from a premature death because...
Ans: it creates an immediate estate
Cash value of a life insurance policy
Ans: can be used for loans or later as retirement income
Money taken out of a Modified Endowment Contract
Ans: May be subject to unfavorable tax rules
Limited Pay Life Policy
Ans: A life insurance policy that continues to provide
protection after the premium period ended
Convertible Term Policy
Ans: Type of policy that can be changed from one that does
not accumulate cash values to one that does
All rights reserved © 2025/ 2026 |
, Page |2
Percentage test that must be satisfied for participation when a firm
establishes a contributory group life policy
Ans: 75%
Robert buys a life annuity with ten years certain which pays him $1,200
a month. After 5 years he dies, how much does beneficiary receive?
Ans: $72,000
(Monthly payment x #months)
Person with best chance of being issued a standard life insurance policy
Ans: Someone whose job does not involve risk
Renewable term life insurance
Ans: The company must renew the policy on the renewal date
regardless of the insurance
It guarantees an insured's insurabilty
It generally has a fixed premium for a specified period
All rights reserved © 2025/ 2026 |
