LIFE INSURANCE EXAMINATION STUDY
SHEET 2026 VERIFIED QUESTION–ANSWER
COLLECTION
◉ A life insurance policy whose cash value will fluctuate depending
upon the performance of a separate account is:
Answer: Variable Life
◉ John Livingston owns a 30-Pay Life policy that he purchased at the
age of 30. The cash value will equal the face amount of the policy
when he reaches the age of:
Answer: 100
◉ Which of the following types of insurance policies would provide
the greatest amount of protection for a temporary period during
which an insured will have limited financial resources?
Answer: Term
◉ Which of the following statements about a Renewable Term policy
is true?
Answer: It is renewable at the option of the insured
,◉ An Annuity is designed to provide which of the following financial
features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate
Answer: I and II
◉ A 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a:
Answer: Immediate Annuity
◉ Which of the following is an example of a Limited-Pay Life policy?
Answer: Life Paid-Up at Age 65
◉ You have a client that is a real estate agent. Which of the following
types of permanent protection is best for this type of client?
Answer: Adjustable life
◉ Which of the following individual policy conversions is usually
permitted without any evidence of insurability?
Answer: Conversion from a Term policy to a Whole Life policy
, ◉ At age 30, Tom Morris wishes to purchase a Whole Life policy. His
producer explains that he can pay for the policy in several ways. One
method is called 20-Pay Life, and another, Straight Life. Tom wishes
to know which plan will accumulate cash value at a faster rate in the
early years of the policy. Which of the following would be the
producer's most appropriate response?
Answer: "20-Pay Life will accumulate cash value faster."
◉ Sandra Timms, age 27, is advised by her producer to purchase Life
insurance to cover a 20-year-amortized $50,000 business-
improvement loan. Which of the following plans would adequately
protect Ms. Timms at the minimum premium outlay?
Answer: A $50,000 Decreasing Term policy for 20 years
◉ In order to sell variable life insurance you must be registered with
which of the following?
Answer: The NASD
◉ Which of the following contracts requires that a series of benefit
payments be made at specified intervals?
Answer: Annuity
◉ A life insurance policy that covers two parties, but only pays when
the last party dies is known as:
SHEET 2026 VERIFIED QUESTION–ANSWER
COLLECTION
◉ A life insurance policy whose cash value will fluctuate depending
upon the performance of a separate account is:
Answer: Variable Life
◉ John Livingston owns a 30-Pay Life policy that he purchased at the
age of 30. The cash value will equal the face amount of the policy
when he reaches the age of:
Answer: 100
◉ Which of the following types of insurance policies would provide
the greatest amount of protection for a temporary period during
which an insured will have limited financial resources?
Answer: Term
◉ Which of the following statements about a Renewable Term policy
is true?
Answer: It is renewable at the option of the insured
,◉ An Annuity is designed to provide which of the following financial
features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate
Answer: I and II
◉ A 45-year old customer who is seeking to supplement his
retirement income at age 65 would not buy a:
Answer: Immediate Annuity
◉ Which of the following is an example of a Limited-Pay Life policy?
Answer: Life Paid-Up at Age 65
◉ You have a client that is a real estate agent. Which of the following
types of permanent protection is best for this type of client?
Answer: Adjustable life
◉ Which of the following individual policy conversions is usually
permitted without any evidence of insurability?
Answer: Conversion from a Term policy to a Whole Life policy
, ◉ At age 30, Tom Morris wishes to purchase a Whole Life policy. His
producer explains that he can pay for the policy in several ways. One
method is called 20-Pay Life, and another, Straight Life. Tom wishes
to know which plan will accumulate cash value at a faster rate in the
early years of the policy. Which of the following would be the
producer's most appropriate response?
Answer: "20-Pay Life will accumulate cash value faster."
◉ Sandra Timms, age 27, is advised by her producer to purchase Life
insurance to cover a 20-year-amortized $50,000 business-
improvement loan. Which of the following plans would adequately
protect Ms. Timms at the minimum premium outlay?
Answer: A $50,000 Decreasing Term policy for 20 years
◉ In order to sell variable life insurance you must be registered with
which of the following?
Answer: The NASD
◉ Which of the following contracts requires that a series of benefit
payments be made at specified intervals?
Answer: Annuity
◉ A life insurance policy that covers two parties, but only pays when
the last party dies is known as:
