NEVADA LIFE & HEALTH INSURANCE
EXAM UPDATED QUESTIONS AND
CORRECT ANSWERS.
Term insurance - ANS temporary protection because it only provides coverage for a specific
period of time
face amount - ANS death benefit
3 basic types of term coverage - ANS level, increasing, decreasing
- based on how the face amount changes during the policy term
What is the premium in term insurance? - ANS regardless of type of term insurance
purchased, premium is level throughout the term of policy
level term insurance - ANS death benefit does not change throughout the life of the policy
annually renewable term - ANS premium increases annually according to the attained age,
guaranteed to be renewable each year
decreasing term - ANS level premium and death benefit that decreases each year over
duration of the policy term
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,increasing term - ANS level premium and death benefit that increases each year over the
duration of the policy term
return of premium life insurance - ANS an increasing term policy that pays an additional
death beneficiary equal to the amount of the premiums paid
- return of premium is paid if the death occurs within a specified period of time or if the insured
outlives the policy term
renewable provision - ANS allows the policyowner the right to renew coverage at the
expiration date without evidence of insurability
convertible provision - ANS provides the policyowner the right to convert the policy to a
permanent insurance policy without evidence of insurability
permanent life insurance - ANS general term used to refer to various forms of life insurance
policies that build cash value and remain in effect for the entire life of the insured (or until age
100) as long as premium is paid
nonforteiture value - ANS aka cash value, does not usually accumulate until the third policy
year and it grows tax deferred
key characteristics of whole life insurance - ANS - level premium
- death benefit
- cash value
- living benefits
3 basic forms of whole life insurance - ANS 1. straight (ordinary) whole life
2. limited-pay whole life
3. single premium whole life
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, straight life - ANS basic whole life policy; policy owner pays the premium from the lime the
policy is issued until insured's death or age 100
- has lowest annual premium
limited-pay whole life - ANS designed so that premiums for coverage will be completely paid-
up well before age 100
- cash value builds up faster
single premium whole life - ANS designed to provide a level death benefit to the insured's
age 100 for a one-time, lump-sum payment
- generate immediate cash value
adjustable life - ANS can assume the form of either term insurance or permanent insurance;
insured typically determines how much coverage is needed and the affordable amount of
premium
adjustable life cash value - ANS only develops when the premiums paid are more than the
cost of the policy
universal life (flexible premium adjustable life) - ANS policyowner has the flexibility to
increase/decrease amount of premium paid into policy; policyowner may skip paying a
premium and policy will not lapse as long as there is sufficient cash value at the time to cover
monthly deductions for cost of insurance
universal life premium types - ANS 1. minimum premium: amount needed to keep policy in
force for year
2. target premium: recommended amount to keep policy in force for lifetime
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
EXAM UPDATED QUESTIONS AND
CORRECT ANSWERS.
Term insurance - ANS temporary protection because it only provides coverage for a specific
period of time
face amount - ANS death benefit
3 basic types of term coverage - ANS level, increasing, decreasing
- based on how the face amount changes during the policy term
What is the premium in term insurance? - ANS regardless of type of term insurance
purchased, premium is level throughout the term of policy
level term insurance - ANS death benefit does not change throughout the life of the policy
annually renewable term - ANS premium increases annually according to the attained age,
guaranteed to be renewable each year
decreasing term - ANS level premium and death benefit that decreases each year over
duration of the policy term
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,increasing term - ANS level premium and death benefit that increases each year over the
duration of the policy term
return of premium life insurance - ANS an increasing term policy that pays an additional
death beneficiary equal to the amount of the premiums paid
- return of premium is paid if the death occurs within a specified period of time or if the insured
outlives the policy term
renewable provision - ANS allows the policyowner the right to renew coverage at the
expiration date without evidence of insurability
convertible provision - ANS provides the policyowner the right to convert the policy to a
permanent insurance policy without evidence of insurability
permanent life insurance - ANS general term used to refer to various forms of life insurance
policies that build cash value and remain in effect for the entire life of the insured (or until age
100) as long as premium is paid
nonforteiture value - ANS aka cash value, does not usually accumulate until the third policy
year and it grows tax deferred
key characteristics of whole life insurance - ANS - level premium
- death benefit
- cash value
- living benefits
3 basic forms of whole life insurance - ANS 1. straight (ordinary) whole life
2. limited-pay whole life
3. single premium whole life
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, straight life - ANS basic whole life policy; policy owner pays the premium from the lime the
policy is issued until insured's death or age 100
- has lowest annual premium
limited-pay whole life - ANS designed so that premiums for coverage will be completely paid-
up well before age 100
- cash value builds up faster
single premium whole life - ANS designed to provide a level death benefit to the insured's
age 100 for a one-time, lump-sum payment
- generate immediate cash value
adjustable life - ANS can assume the form of either term insurance or permanent insurance;
insured typically determines how much coverage is needed and the affordable amount of
premium
adjustable life cash value - ANS only develops when the premiums paid are more than the
cost of the policy
universal life (flexible premium adjustable life) - ANS policyowner has the flexibility to
increase/decrease amount of premium paid into policy; policyowner may skip paying a
premium and policy will not lapse as long as there is sufficient cash value at the time to cover
monthly deductions for cost of insurance
universal life premium types - ANS 1. minimum premium: amount needed to keep policy in
force for year
2. target premium: recommended amount to keep policy in force for lifetime
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
