NEW JERSEY LIFE INSURANCE LATEST EXAMS TEST
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Accidental Death Rider - ✔✔pays some multiple of the face amount if death is the
result of an accident as defined in the policy
✔✔Accidental Death and Dismemberment Rider - ✔✔pays the principal (face amount)
for accidental death, and pays a percentage of that amount, or a capital sum, for
accidental dismemberment
✔✔Guaranteed Insurability Rider - ✔✔Allows insured to purchas additional amounts of
disability income insurance at future dates
- future dates are policy anniversary dates
-added coverage can be attained but must prove income increase
- AKA Additional Purchase or Future Increase Option
✔✔Return of Premium Rider - ✔✔Implemented by using increasing term insurance.
When added to a whole life policy, it provides that at death prior to a given age, not only
is the original face amount payable, but an amount equal to all premiums previously
paid is also payable to the beneficiary.
✔✔Term Riders - ✔✔allow for an additional amount of temporary insurance to be
provided on the insured without the need to issue another policy. they are usually
attached to a whole life policy to provide greater protection at a reduced cost.
✔✔Cost of Living Rider - ✔✔addresses the inflation factor by automatically increasing
the amount of insurance without evidence of insurability from the insured
✔✔Nonforfeiture Options - ✔✔Certain guarantees are built into the policy that cannot be
forfeited by the policy owner
✔✔Paid-Up Option - ✔✔Pays off the policy more quickly than scheduled. If the
company's overall performance declines, premiums may have to be resumed.
✔✔One-Year Term Option - ✔✔increases the overall policy death benefit
✔✔Settlement Options (Life and Annuities) - ✔✔methods used to pay the death
benefits to a beneficiary upon the insured's death, or to pay the endowment benefit if
the insured lives to the endowment date
✔✔lump sum - ✔✔upon death of the insured, the contract is designed to pay the
proceeds in cash
, ✔✔Life Income Option - ✔✔provides the recipient with an income that he or she cannot
outlive
✔✔Life income with period certain option - ✔✔the recipient is provided with the "best of
both worlds" in terms of a lifetime income and guaranteed installment period
✔✔Life Income Joint and Survivor - ✔✔option guarantees an income for two or more
recipients for as long as they live. Most contractsprovide that the surviving recipient will
receive a reduced payment after the first recipient dies.
✔✔Interest Only Option - ✔✔the insurance company retains the policy proceeds and
pays interest on the proceeds to the recipient at regular intervals
✔✔Fixed Period Option - ✔✔a specified period of years is selected, and equal
installments are paid to the recipient
✔✔Fixed Amount Option - ✔✔pays a fixed specific amount in installments until the
proceeds are exhausted
✔✔Third-Party Ownership - ✔✔legal term used to identify an individual or entity that is
not an insured under the contract, but that has a legally enforceable right under it
✔✔Group Life Insurance - ✔✔Employer is the Policy Owner and the Employees are the
insured
- no evidence of insurability
✔✔Conversion - ✔✔no evidence of insurability within a specified number of days
(usually 30 or 31 days of termination)
✔✔noncontributory - ✔✔-Employer pays 100% of the premium; requires 100%
employee participation
✔✔Contributory - ✔✔Employer and employees share the cost of premium
- Requires 75% of employee participation
✔✔Qualified Plans - ✔✔Approved by the IRS
- tax Benefits for employers and employees
- must be permanent and have a vesting requirement
- Cannot Discriminate in favor of the prohibited group
✔✔Traditional IRA - ✔✔Individual Retirement Account - A personal qualified retirement
account through which eligible individuals accumulate tax-deferred income up to a
certain amount each year, depending on the person's tax bracket.
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Accidental Death Rider - ✔✔pays some multiple of the face amount if death is the
result of an accident as defined in the policy
✔✔Accidental Death and Dismemberment Rider - ✔✔pays the principal (face amount)
for accidental death, and pays a percentage of that amount, or a capital sum, for
accidental dismemberment
✔✔Guaranteed Insurability Rider - ✔✔Allows insured to purchas additional amounts of
disability income insurance at future dates
- future dates are policy anniversary dates
-added coverage can be attained but must prove income increase
- AKA Additional Purchase or Future Increase Option
✔✔Return of Premium Rider - ✔✔Implemented by using increasing term insurance.
When added to a whole life policy, it provides that at death prior to a given age, not only
is the original face amount payable, but an amount equal to all premiums previously
paid is also payable to the beneficiary.
✔✔Term Riders - ✔✔allow for an additional amount of temporary insurance to be
provided on the insured without the need to issue another policy. they are usually
attached to a whole life policy to provide greater protection at a reduced cost.
✔✔Cost of Living Rider - ✔✔addresses the inflation factor by automatically increasing
the amount of insurance without evidence of insurability from the insured
✔✔Nonforfeiture Options - ✔✔Certain guarantees are built into the policy that cannot be
forfeited by the policy owner
✔✔Paid-Up Option - ✔✔Pays off the policy more quickly than scheduled. If the
company's overall performance declines, premiums may have to be resumed.
✔✔One-Year Term Option - ✔✔increases the overall policy death benefit
✔✔Settlement Options (Life and Annuities) - ✔✔methods used to pay the death
benefits to a beneficiary upon the insured's death, or to pay the endowment benefit if
the insured lives to the endowment date
✔✔lump sum - ✔✔upon death of the insured, the contract is designed to pay the
proceeds in cash
, ✔✔Life Income Option - ✔✔provides the recipient with an income that he or she cannot
outlive
✔✔Life income with period certain option - ✔✔the recipient is provided with the "best of
both worlds" in terms of a lifetime income and guaranteed installment period
✔✔Life Income Joint and Survivor - ✔✔option guarantees an income for two or more
recipients for as long as they live. Most contractsprovide that the surviving recipient will
receive a reduced payment after the first recipient dies.
✔✔Interest Only Option - ✔✔the insurance company retains the policy proceeds and
pays interest on the proceeds to the recipient at regular intervals
✔✔Fixed Period Option - ✔✔a specified period of years is selected, and equal
installments are paid to the recipient
✔✔Fixed Amount Option - ✔✔pays a fixed specific amount in installments until the
proceeds are exhausted
✔✔Third-Party Ownership - ✔✔legal term used to identify an individual or entity that is
not an insured under the contract, but that has a legally enforceable right under it
✔✔Group Life Insurance - ✔✔Employer is the Policy Owner and the Employees are the
insured
- no evidence of insurability
✔✔Conversion - ✔✔no evidence of insurability within a specified number of days
(usually 30 or 31 days of termination)
✔✔noncontributory - ✔✔-Employer pays 100% of the premium; requires 100%
employee participation
✔✔Contributory - ✔✔Employer and employees share the cost of premium
- Requires 75% of employee participation
✔✔Qualified Plans - ✔✔Approved by the IRS
- tax Benefits for employers and employees
- must be permanent and have a vesting requirement
- Cannot Discriminate in favor of the prohibited group
✔✔Traditional IRA - ✔✔Individual Retirement Account - A personal qualified retirement
account through which eligible individuals accumulate tax-deferred income up to a
certain amount each year, depending on the person's tax bracket.
