Spring Semester February 2026 Texas Life & Health
Insurance Exam Prep | Licensing Review, Texas
Insurance Laws & Regulations, Life & Health Policy
Types, Underwriting, Ethics, Risk Management, NGN-
Style Practice Questions & Licensing Exam Success
Guide
, Question 1: What is the primary purpose of life insurance?
• A) To provide tax-free income during retirement
• B) To pay off debts after the policyholder's death
• C) To provide financial protection for the insured’s beneficiaries
• D) To accumulate cash value for the policyholder
Correct Option: C) To provide financial protection for the insured’s beneficiaries
Rationale: The primary purpose of life insurance is to ensure that beneficiaries receive
financial support upon the death of the insured. While life insurance can also serve
other purposes, its core function is to provide a safety net for loved ones.
Question 2: In Texas, what is the minimum age a person must be to obtain a life
insurance policy without parental consent?
• A) 16
• B) 18
• C) 21
• D) 25
Correct Option: B) 18
Rationale: In Texas, individuals must be at least 18 years old to enter into a binding
contract, including purchasing life insurance, without parental or guardian consent.
This age is established to ensure that individuals can legally agree to the contract's
terms.
Question 3: Which of the following is a characteristic of whole life insurance?
• A) Coverage that lasts for a specified period
• B) Provides a death benefit and cash value accumulation
• C) Only pays benefits if the policyholder dies from an accident
• D) Requires the policyholder to renew annually
Correct Option: B) Provides a death benefit and cash value accumulation
Rationale: Whole life insurance is designed to provide lifetime coverage along with a
cash value component that grows over time. The death benefit is payable upon the
insured's death, and the cash value can be borrowed against or withdrawn.
Insurance Exam Prep | Licensing Review, Texas
Insurance Laws & Regulations, Life & Health Policy
Types, Underwriting, Ethics, Risk Management, NGN-
Style Practice Questions & Licensing Exam Success
Guide
, Question 1: What is the primary purpose of life insurance?
• A) To provide tax-free income during retirement
• B) To pay off debts after the policyholder's death
• C) To provide financial protection for the insured’s beneficiaries
• D) To accumulate cash value for the policyholder
Correct Option: C) To provide financial protection for the insured’s beneficiaries
Rationale: The primary purpose of life insurance is to ensure that beneficiaries receive
financial support upon the death of the insured. While life insurance can also serve
other purposes, its core function is to provide a safety net for loved ones.
Question 2: In Texas, what is the minimum age a person must be to obtain a life
insurance policy without parental consent?
• A) 16
• B) 18
• C) 21
• D) 25
Correct Option: B) 18
Rationale: In Texas, individuals must be at least 18 years old to enter into a binding
contract, including purchasing life insurance, without parental or guardian consent.
This age is established to ensure that individuals can legally agree to the contract's
terms.
Question 3: Which of the following is a characteristic of whole life insurance?
• A) Coverage that lasts for a specified period
• B) Provides a death benefit and cash value accumulation
• C) Only pays benefits if the policyholder dies from an accident
• D) Requires the policyholder to renew annually
Correct Option: B) Provides a death benefit and cash value accumulation
Rationale: Whole life insurance is designed to provide lifetime coverage along with a
cash value component that grows over time. The death benefit is payable upon the
insured's death, and the cash value can be borrowed against or withdrawn.
