FPQP Exam (module 5) Questions and
All Correct Answers 2026.
Group Term Life Insurance - Answer Form of insurance carried by employers for their
employees that provides a lump-sum payment to the employees' beneficiaries. Most common.
Stops at termination
no evidence of insurability required
up to $50,000 of coverage: no income taxation for the employee
Whole Life Insurance - Answer Common type of permanent life insurance coverage.
savings element (cash value)
higher premiums than term at any given age
cash value accumulation
tax deferral
dividends (w/ participating policies)
can borrow against cash value
Variable whole life - Answer similar to fixed whole life.
offers investment options "Sub-accounts" for the policies cash value
fixed premium
fixed face amount of coverage
cash value varies since invested in stocks/bonds
Universal Life Insurance - Answer Flexible premiums
flexible death benefits
flexibility "unbundled":
-premium
-face amount of coverage
-cash value
Fluctuating interest rate:
-danger of lapsing
-potential benefit of higher cash value
Variable Universal Life - Answer Similar to universal life insurance
offers investment options "sub-accounts" for policys cash value
All Correct Answers 2026.
Group Term Life Insurance - Answer Form of insurance carried by employers for their
employees that provides a lump-sum payment to the employees' beneficiaries. Most common.
Stops at termination
no evidence of insurability required
up to $50,000 of coverage: no income taxation for the employee
Whole Life Insurance - Answer Common type of permanent life insurance coverage.
savings element (cash value)
higher premiums than term at any given age
cash value accumulation
tax deferral
dividends (w/ participating policies)
can borrow against cash value
Variable whole life - Answer similar to fixed whole life.
offers investment options "Sub-accounts" for the policies cash value
fixed premium
fixed face amount of coverage
cash value varies since invested in stocks/bonds
Universal Life Insurance - Answer Flexible premiums
flexible death benefits
flexibility "unbundled":
-premium
-face amount of coverage
-cash value
Fluctuating interest rate:
-danger of lapsing
-potential benefit of higher cash value
Variable Universal Life - Answer Similar to universal life insurance
offers investment options "sub-accounts" for policys cash value
