WEBCE EXAM TUTOR 2026/2027
ACTUAL QUESTIONS WITH VERIFIED
ANSWERS.
A life insurance policy that offers coverage for a specified,
limited period with no cash value building up is called a:
term life insurance policy
whole life insurance policy
graded premium whole life policy
limited pay life insurance policy - correct answer-term life
insurance policy
Which of the following usually offers credit life insurance in
connection with a transaction?
borrower
investment company
insurance company in conjunction with a policy loan
lender - correct answer-lender
,For universal life insurance, an insurer credits interest to a
policy's cash value based on which of the following?
current interest rates
the performance of the underlying subaccount
an equity index
an interest index - correct answer-current interest rates
Andrea bought a $300,000 term-to-55 policy. Which of the
following statements about the policy is NOT correct?
The policy gives $300,000 of coverage until Andrea reaches
age 55.
The premium for the policy stays the same until the policy ends.
If Andrea dies before age 55, the policy will pay a $300,000
death benefit.
The policy will pay the entire death benefit only if Andrea lives
beyond age 55. - correct answer-the policy will pay the entire
death benefit only if Andrea lives beyond 55
Variable life insurance offers all of the following EXCEPT:
cash values that may exceed the projected amount at policy
issue
,a minimum guaranteed death benefit
guaranteed cash values
a death benefit that may be higher than the amount at policy
issue - correct answer-guaranteed cash values
Joan owns a variable universal life insurance policy that now
has a $100,000 cash value and is beyond its surrender charge
period. This year, she plans to withdraw $25,000 from her
policy's cash value to buy a new car. Which one of the following
statements is most correct?
Joan must pay a penalty tax for taking an early withdrawal from
her cash value.
Joan's death benefit will be reduced by $25,000.
Joan can make the withdrawal but will have to pay it back with
interest.
Joan can have access to her cash value only through a policy
loan or a complete surrender of the policy. - correct answer-
Joan's death benefit will be reduced by $25,000
What type of insurance does group life insurance most
commonly consist of?
variable life insurance
, whole life insurance
decreasing term life insurance
level term life insurance - correct answer-level term life
insurance
The convertibility provision of a term life policy lets the owner
convert the term coverage into what type of policy?
a convertible term policy
a renewable term policy
a permanent life insurance policy
a paid-up whole life insurance policy - correct answer-a
permanent life insurance policy
If a universal life insurance policyowner chooses death benefit
option 1, which of the following correctly describes the death
benefit?
The death benefit equals the policy's specified amount plus its
cash value.
The death benefit increases as the cash value increases.
The death benefit will change based on the policy's underlying
investments.
ACTUAL QUESTIONS WITH VERIFIED
ANSWERS.
A life insurance policy that offers coverage for a specified,
limited period with no cash value building up is called a:
term life insurance policy
whole life insurance policy
graded premium whole life policy
limited pay life insurance policy - correct answer-term life
insurance policy
Which of the following usually offers credit life insurance in
connection with a transaction?
borrower
investment company
insurance company in conjunction with a policy loan
lender - correct answer-lender
,For universal life insurance, an insurer credits interest to a
policy's cash value based on which of the following?
current interest rates
the performance of the underlying subaccount
an equity index
an interest index - correct answer-current interest rates
Andrea bought a $300,000 term-to-55 policy. Which of the
following statements about the policy is NOT correct?
The policy gives $300,000 of coverage until Andrea reaches
age 55.
The premium for the policy stays the same until the policy ends.
If Andrea dies before age 55, the policy will pay a $300,000
death benefit.
The policy will pay the entire death benefit only if Andrea lives
beyond age 55. - correct answer-the policy will pay the entire
death benefit only if Andrea lives beyond 55
Variable life insurance offers all of the following EXCEPT:
cash values that may exceed the projected amount at policy
issue
,a minimum guaranteed death benefit
guaranteed cash values
a death benefit that may be higher than the amount at policy
issue - correct answer-guaranteed cash values
Joan owns a variable universal life insurance policy that now
has a $100,000 cash value and is beyond its surrender charge
period. This year, she plans to withdraw $25,000 from her
policy's cash value to buy a new car. Which one of the following
statements is most correct?
Joan must pay a penalty tax for taking an early withdrawal from
her cash value.
Joan's death benefit will be reduced by $25,000.
Joan can make the withdrawal but will have to pay it back with
interest.
Joan can have access to her cash value only through a policy
loan or a complete surrender of the policy. - correct answer-
Joan's death benefit will be reduced by $25,000
What type of insurance does group life insurance most
commonly consist of?
variable life insurance
, whole life insurance
decreasing term life insurance
level term life insurance - correct answer-level term life
insurance
The convertibility provision of a term life policy lets the owner
convert the term coverage into what type of policy?
a convertible term policy
a renewable term policy
a permanent life insurance policy
a paid-up whole life insurance policy - correct answer-a
permanent life insurance policy
If a universal life insurance policyowner chooses death benefit
option 1, which of the following correctly describes the death
benefit?
The death benefit equals the policy's specified amount plus its
cash value.
The death benefit increases as the cash value increases.
The death benefit will change based on the policy's underlying
investments.
