Chapter 3: Life Insurance Policies – ExamFX Exam Questions and Correct Answers | Latest Update 2026 | Expert-Verified Study Guide

CHAPTER 3 - LIFE INSURANCE POLICIES - EXAMFX
ee ee ee ee ee ee ee



2025 LATEST UPDATE EXPERT VERIFIED QUESTIONS
ee ee ee ee ee ee



AND ANSWERS REAL EXAM
ee ee ee ee




Accumulate e e - e e correct e e answer-build e e up


Attained e e Age e e - e e correct e e answer-The e e insured's e e age e e at e e the e e time e e the e e policy e e if e e renewed e e or e e replaced


cash e e value ee - e e correct e e answer-a e e policies, e e savings e e element e e or e e living e e benefit


deferred e e - e e correct e e answer-withheld e e or e e postponed e e until e e a e e specified e e time e e or e e event e e in e e the e e future


endow e e - e e correct e e answer-
to e e have e e the e e cash e e value e e of e e a e e whole e e life e e policy e e reached e e the e e contractual e e face e e amount


Face e e Amount e e - e e correct e e answer-The e e amount e e of e e benefits e e stated e e in e e the e e life e e insurance e e policy


fixed e e life e e insurance e e products e e - e e correct e e answer-
contracts e e that e e offer e e guaranteed e e minimum e e or e e fixed e e benefits


lapse ee - e e correct e e answer-policy e e termination e e due ee to e e non-payment e e of e e premium


Level e e Premium e e - e e correct e e answer-The e e premium e e does e e not e e change e e throughout e e the e e life e e of e e a e e policy


non-forfeiture e e values e e - e e correct e e answer-
benefits eein eea eelife eeinsurance eepolicy eethat eethe eepolicy eeowner eecannot eelose eeeven eeif eethe eepolicy eeis
eesurrendered eeor e e lapses




Policy e e maturity e e - e e correct e e answer-The e e time e e when e e the e e face e e value e e is e e paid e e out


securities e e - e e correct e e answer-
financial e e instruments e e that e e made e e trade e e for e e value e e for e e example, e e stocks, e e bonds e e and e e options

, variable e e life e e insurance e e products e e - e e correct e e answer-
contracts eein eewhich eethe eecash eevalues eeaccumulate eebased eeon eeupon eethe eespecific eeportfolio eeof eestocks
eewithout eeg e e uarantees eeof eeperformance




temporary eeinsurance ee- eecorrect eeanswer-aka eeterm eelife eeinsurance eeor eepure eelife
insurance eecoverage eefor eespecific eeperiod eeof eetime
ee




which eetype eeof eepolicy eeprovides eethe eegreatest eecoverage eefor eethe eelowest eepremium? ee- eecorrect
eeanswer- eeterm eelife eeinsurance




what eeis eepure eedeath eeprotection? ee- eecorrect eeanswer-term eelife
insurance. eeno eecash eevalue eeor eeother eeliving eebenefits.
ee



Ensure eedies eethe eepolicy eepays eethe eebenefit eenew eeline eeif eepolicy eecanceled eeor eeexpired eebefore eedeath,
eenothing eeis e e payable




three e e basic e e types e e of e e term e e coverage e e - e e correct e e answer-1. e e level e e term
2. increasing
3. decreasing


does e e the e e premium e e change e e in e e a e e term e e life e e policy? e e - e e correct e e answer-no


level e e term e e insurance e e - e e correct e e answer-
most e e common e e , e e death e e benefit e e does e e not e e change e e throughout e e the e e policy


annually e e renewable e e term e e - e e correct e e answer-
renews e e each e e year e e without e e proof e e of e e insurability, e e premium e e increases e e according e e to ee attained e e age


Decreasing eeTerm eeInsurance ee- eecorrect eeanswer-level eepremium eeduring eeterm eeof
ee policy. eeface eeamount/ eedeath eebenefit eedecreases eeover eetime.
commonly e e purchased e e to e e ensure e e the e e payment e e of e e a e e mortgage e e are e e other e e debts