PRIMERICA LIFE INSURANCE TEST PAPER 2025/2026
QUESTIONS WITH ANSWERS RATED A+
✔✔Job of company underwritter - ✔✔Determining if someone is eligible for insurance
and classifying them as:
preferred
standard
substandard
declined
✔✔Preferred - ✔✔reduced risk of loss
covered at reduced rate
✔✔Standard - ✔✔Average exposures
covered at standard rate
✔✔Substandard - ✔✔Increased risk of loss
covered at increased rate
✔✔Declined - ✔✔too high a risk
not covered
✔✔Final step in issuing life insurance - ✔✔Policy is issued and you deliver it
✔✔Two types of life insurance policies - ✔✔Term and whole life
✔✔Term insurance - ✔✔Temporary insurance; specific time period
has no cash value
can be renewed or converted
✔✔Another name for term insurance - ✔✔Pure protection
✔✔Why is term insurance also known as pure protection? - ✔✔Its provides the policy
owner with the most amount of protection for the least amount of money
✔✔3 types of term insurance - ✔✔level
increasing
decreasing
✔✔Level term insurance - ✔✔Get a face amount that stays level for the entire time
10 year term policy
provides $50000
✔✔Increasing term insurance - ✔✔Start low and increase gradually over course of time
, increases to 50000 by end of 10 years
✔✔Decreasing term insurance - ✔✔Starts at 50000 and decreased gradually over
course of 10 years
✔✔When are decreasing term insurance typically used? - ✔✔To pay for mortages
✔✔Do premiums change during any of these terms? - ✔✔No the premium stays level
for all of them
✔✔Whole life insurance - ✔✔Provides protection till death or age 100 paying for
coverage and life value
level premiums
cash value/ saving element
✔✔Another name for whole life insurance? - ✔✔Permanent insurance
✔✔What do people pay for when they get whole life insurance? - ✔✔Pay for cash value
or saving element AND
for coverage
✔✔What does a cash value or saving element mean? - ✔✔if the insured dies before
age 100 then the beneficiary will get the (only death benefit is payed not cash value) IF
insured reaches age 100 then the insured will receive cash value
✔✔How are whole life insurance policies classified? - ✔✔Straight life
limited pay
single pay
✔✔Straight life - ✔✔pays level premiums every single year until age 100 or death
✔✔limited pay - ✔✔pays premiums in limited period of time but still retain permanent
coverage till death or age 100
✔✔Example of limited pay - ✔✔20 pay whole life policy
policyowner pays policy for 20 years and after 20 years they retain the coverage of that
policy until death or age 100
✔✔Single pay - ✔✔a lump sum payment; one time single premium payment and
coverage until death or age 100
✔✔Provisions - ✔✔Clauses contained within a live insurance policy that are designed to
protect he policy owner
QUESTIONS WITH ANSWERS RATED A+
✔✔Job of company underwritter - ✔✔Determining if someone is eligible for insurance
and classifying them as:
preferred
standard
substandard
declined
✔✔Preferred - ✔✔reduced risk of loss
covered at reduced rate
✔✔Standard - ✔✔Average exposures
covered at standard rate
✔✔Substandard - ✔✔Increased risk of loss
covered at increased rate
✔✔Declined - ✔✔too high a risk
not covered
✔✔Final step in issuing life insurance - ✔✔Policy is issued and you deliver it
✔✔Two types of life insurance policies - ✔✔Term and whole life
✔✔Term insurance - ✔✔Temporary insurance; specific time period
has no cash value
can be renewed or converted
✔✔Another name for term insurance - ✔✔Pure protection
✔✔Why is term insurance also known as pure protection? - ✔✔Its provides the policy
owner with the most amount of protection for the least amount of money
✔✔3 types of term insurance - ✔✔level
increasing
decreasing
✔✔Level term insurance - ✔✔Get a face amount that stays level for the entire time
10 year term policy
provides $50000
✔✔Increasing term insurance - ✔✔Start low and increase gradually over course of time
, increases to 50000 by end of 10 years
✔✔Decreasing term insurance - ✔✔Starts at 50000 and decreased gradually over
course of 10 years
✔✔When are decreasing term insurance typically used? - ✔✔To pay for mortages
✔✔Do premiums change during any of these terms? - ✔✔No the premium stays level
for all of them
✔✔Whole life insurance - ✔✔Provides protection till death or age 100 paying for
coverage and life value
level premiums
cash value/ saving element
✔✔Another name for whole life insurance? - ✔✔Permanent insurance
✔✔What do people pay for when they get whole life insurance? - ✔✔Pay for cash value
or saving element AND
for coverage
✔✔What does a cash value or saving element mean? - ✔✔if the insured dies before
age 100 then the beneficiary will get the (only death benefit is payed not cash value) IF
insured reaches age 100 then the insured will receive cash value
✔✔How are whole life insurance policies classified? - ✔✔Straight life
limited pay
single pay
✔✔Straight life - ✔✔pays level premiums every single year until age 100 or death
✔✔limited pay - ✔✔pays premiums in limited period of time but still retain permanent
coverage till death or age 100
✔✔Example of limited pay - ✔✔20 pay whole life policy
policyowner pays policy for 20 years and after 20 years they retain the coverage of that
policy until death or age 100
✔✔Single pay - ✔✔a lump sum payment; one time single premium payment and
coverage until death or age 100
✔✔Provisions - ✔✔Clauses contained within a live insurance policy that are designed to
protect he policy owner
