NC Life Insurance Exam Prep Questions and Answers Already Passed Updated 2026

NC Life Insurance Exam Updated Prep Course 2026 | Recently Updated Verified Term Life - answer - Temporary life insurance for a specified period; normally no cash value. Level Term - answer - Death benefit stays the same during the term. Increasing Term - answer - Death benefit increases over time. Decreasing Term - answer - Death benefit decreases over time; often used for mortgages. Renewable Term - answer - Can renew without proving insurability. Convertible Term - answer - Can change to permanent insurance without proving insurability. Whole Life - answer - Permanent insurance with level premiums, death benefit, and cash value. Straight/Continuous-Premium Whole Life - answer - Premiums paid for life. Limited-Pay Whole Life - answer - Premiums paid for a limited number of years; coverage remains for life. Single-Premium Whole Life - answer - Entire premium paid at once. Endowment - answer - Pays benefit at death or when the insured reaches a specified age/date. Modified Premium - answer - Lower premiums initially, then higher premiums later. Graded Premium - answer - Premium gradually increases before leveling off. Indeterminate Premium - answer - Insurer may adjust premiums within a guaranteed maximum. Adjustable Life - answer - Allows changes to premium, death benefit, or coverage period. Universal Life - answer - Flexible-premium permanent insurance with adjustable death benefit and cash value. Target Premium - answer - Suggested premium intended to keep a universal-life policy funded. Unbundled Policy - answer - Separately identifies mortality, expense, and interest components. Death Benefit Option A - answer - Generally level death benefit. Death Benefit Option B - answer - Generally face amount + cash value. Corridor of Insurance - answer - Minimum amount of death protection above cash value required for tax treatment. Interest-Sensitive Whole Life - answer - Whole life whose cash value responds to current interest assumptions. Joint Life - answer - Covers two people; pays when the first insured dies. Survivorship/Last Survivor Life - answer - Covers two people; pays after the second insured dies. Juvenile Life - answer - Life insurance covering a child. Jumping Juvenile - answer - Juvenile policy whose face amount increases at a specified age. Family Policy/Rider - answer - Coverage for several family members under one policy/rider. Return of Premium - answer - Returns specified premiums if insured survives the term. Annuity - answer - Contract designed primarily to provide income, often during retirement. Annuitant - answer - Person whose life expectancy determines payments. Owner - answer - Person controlling the annuity contract. Beneficiary (Annuity) - answer - Receives benefits after the owner's/annuitant's death as specified. Accumulation Period - answer - Period when money is being put into the annuity. Annuitization Period - answer - Period when accumulated funds are converted into income. Immediate Annuity - answer - Payments begin shortly after purchase. Deferred Annuity - answer - Payments begin at a future date. Single-Premium Annuity - answer - Funded with one lump-sum payment. Flexible-Premium Annuity - answer - Allows varying contributions over time. Fixed Annuity - answer - Insurer guarantees specified interest/payment terms. Variable Annuity - answer - Value/payments vary with investment performance. Equity-Indexed Annuity - answer - Interest is linked partly to a market index, subject to contract limits. Straight/Pure Life Annuity - answer - Pays for life; normally stops at death. Life with Period Certain - answer - Lifetime payments with a guaranteed minimum payment period. Joint-and-Survivor Annuity - answer - Payments continue until the last covered annuitant dies. Insuring Clause - answer - Insurer's basic promise to pay covered benefits. Ownership Clause - answer - Identifies the policyowner's rights. Entire Contract - answer - Policy + attached app