TEXAS GENERAL LINES LIFE, ACCIDENT
AND HEALTH INSURANCE ACTUAL EXAM
| COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS| 2026 LATEST UPDATED| A+
1) 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?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
- Answer-D—A $50,000 Decreasing Term policy for
20 years
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,Explanation: The key here is "minimum premium".
Term is the most inexpensive type of coverage.
Since Sandra's $50,000 loan will be paid off over 20
years and the loan balance will decrease each year,
Decreasing Term makes sense. Decreasing Term is
not renewable.
2) A 45-year old customer who is seeking to
supplement his retirement income at age 65 would
not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
- Answer-B- Equity Indexed Annuity
3) John Livingston owns a 30-Pay Life policy that he
purchased at the age of 30. The cash value will
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,equal the face amount of the policy when he
reaches the age of:
A- 60
B- 70
C- 100
D- 30
- Answer-C- 100
Explanation: Limited Pay Life insurance policies such
as Life Paid Up at 65 or 20-Pay Life are simply
variations of Whole Life policies. The cash value will
equal face amount of the policy (at least) at the
maturity of the policy, which is always age 100 on
Whole Life policies. These limited-pay policies are
designed so that the insured may pay his or her
premiums faster and be "paid up" at a certain age.
However, just because the premiums are paid up
doesn't mean the policy has matured.
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, 4) Which of the following is an example of a
Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
- Answer-C- Life Paid-Up at Age 65
5) Which of the following policies provides the
greatest amount of protection for an insured's
premium dollar as well as some cash accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
- Answer-B- Whole Life
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AND HEALTH INSURANCE ACTUAL EXAM
| COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS| 2026 LATEST UPDATED| A+
1) 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?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
- Answer-D—A $50,000 Decreasing Term policy for
20 years
1|Page
,Explanation: The key here is "minimum premium".
Term is the most inexpensive type of coverage.
Since Sandra's $50,000 loan will be paid off over 20
years and the loan balance will decrease each year,
Decreasing Term makes sense. Decreasing Term is
not renewable.
2) A 45-year old customer who is seeking to
supplement his retirement income at age 65 would
not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
- Answer-B- Equity Indexed Annuity
3) John Livingston owns a 30-Pay Life policy that he
purchased at the age of 30. The cash value will
2|Page
,equal the face amount of the policy when he
reaches the age of:
A- 60
B- 70
C- 100
D- 30
- Answer-C- 100
Explanation: Limited Pay Life insurance policies such
as Life Paid Up at 65 or 20-Pay Life are simply
variations of Whole Life policies. The cash value will
equal face amount of the policy (at least) at the
maturity of the policy, which is always age 100 on
Whole Life policies. These limited-pay policies are
designed so that the insured may pay his or her
premiums faster and be "paid up" at a certain age.
However, just because the premiums are paid up
doesn't mean the policy has matured.
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, 4) Which of the following is an example of a
Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
- Answer-C- Life Paid-Up at Age 65
5) Which of the following policies provides the
greatest amount of protection for an insured's
premium dollar as well as some cash accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
- Answer-B- Whole Life
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