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PSI Life Insurance Exam 2025 | Complete
Updated Exam Prep with 100% Verified
Questions & Correct Answers | Real Test Practice
Guide | Graded A+
The payer rider on a juvenile life policy provides that if the payer dies or becomes
disabled before the insured juvenile reaches the age specified in the policy that
the - Correct-answer-Insurer will make the payment until the insured juvenile
reaches a specified age-usually twenty one or twenty five
Which of the following contracts provides benefits that fluctuate automatically
with investment results - Correct-answer-Variable life insurance
The theory of probability is applied to life insurance through the use of - Correct-
answer-Mortality tables
,what is the difference between deferred annuities and immediate annuities? -
Correct-answer-Deferred annuities have longer accumulation periods
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Which of the following is NOT an option for the use of the policy dividends? -
Correct-answer-Fund the distribution of monthly income payments.
The insured is totally and permanently disabled. The insured's policy continues in
force without payment of further premiums because the policy contains a -
Correct-answer-Waiver of premium provision
Your client has just bought a new home which he has financed with a $150,000,
7.5% interest, 30-year bank loan. He would like to be sure that if he dies that the
unpaid balance of the mortgage would be paid. He wants a policy that will cover
the mortgage balance-no more, no less anytime during the life of the mortgage.
Which policy is designed to meet this need? - Correct-answer-Decreasing term
policy
Death benefits that are received by a beneficiary are generally - Correct-answer-
Exempt from federal income tax.
An insured replaced an existing annuity with a new one and must pay a surrender
charge for cancelling the existing annuity. The new policy folds no greater
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financial benefits to the insured than the existing contract. This is an example of -
Correct-answer-An unnecessary replacement
What do we call the process whereby insurers decide which customers to insure
and what coverage to offer - Correct-answer-Underwriting
What is used to determine the amount of an annuity distribution that is exempt
from taxation - Correct-answer-The exclusion ratio
The number of deaths during a year compared with the total number of persons
exposed in the class is known as the - Correct-answer-Mortality rate
The insurer bought an annuity ten years ago. He will retire in five years. To
determine the value of his annuity, he must multiple the value of the
"accumulation units" he owns, times the value of the "separate account". This
type of annuity is known as a - Correct-answer-Variable annuity
All of the following are true about term life insurance policies EXCEPT the -
Correct-answer-Face amount is paid if the insured survives to the end of the
policy period.
PSI Life Insurance Exam 2025 | Complete
Updated Exam Prep with 100% Verified
Questions & Correct Answers | Real Test Practice
Guide | Graded A+
The payer rider on a juvenile life policy provides that if the payer dies or becomes
disabled before the insured juvenile reaches the age specified in the policy that
the - Correct-answer-Insurer will make the payment until the insured juvenile
reaches a specified age-usually twenty one or twenty five
Which of the following contracts provides benefits that fluctuate automatically
with investment results - Correct-answer-Variable life insurance
The theory of probability is applied to life insurance through the use of - Correct-
answer-Mortality tables
,what is the difference between deferred annuities and immediate annuities? -
Correct-answer-Deferred annuities have longer accumulation periods
,2|Page
Which of the following is NOT an option for the use of the policy dividends? -
Correct-answer-Fund the distribution of monthly income payments.
The insured is totally and permanently disabled. The insured's policy continues in
force without payment of further premiums because the policy contains a -
Correct-answer-Waiver of premium provision
Your client has just bought a new home which he has financed with a $150,000,
7.5% interest, 30-year bank loan. He would like to be sure that if he dies that the
unpaid balance of the mortgage would be paid. He wants a policy that will cover
the mortgage balance-no more, no less anytime during the life of the mortgage.
Which policy is designed to meet this need? - Correct-answer-Decreasing term
policy
Death benefits that are received by a beneficiary are generally - Correct-answer-
Exempt from federal income tax.
An insured replaced an existing annuity with a new one and must pay a surrender
charge for cancelling the existing annuity. The new policy folds no greater
, 3|Page
financial benefits to the insured than the existing contract. This is an example of -
Correct-answer-An unnecessary replacement
What do we call the process whereby insurers decide which customers to insure
and what coverage to offer - Correct-answer-Underwriting
What is used to determine the amount of an annuity distribution that is exempt
from taxation - Correct-answer-The exclusion ratio
The number of deaths during a year compared with the total number of persons
exposed in the class is known as the - Correct-answer-Mortality rate
The insurer bought an annuity ten years ago. He will retire in five years. To
determine the value of his annuity, he must multiple the value of the
"accumulation units" he owns, times the value of the "separate account". This
type of annuity is known as a - Correct-answer-Variable annuity
All of the following are true about term life insurance policies EXCEPT the -
Correct-answer-Face amount is paid if the insured survives to the end of the
policy period.
