PSI LIFE PRACTICE EXAM 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ Variable Universal Life. Answer: Which policy type is backed by
equity investments and allows the policyholder to adjust the death
benefit?
◉ Continuous Premium. Answer: Which whole life policy premium type
is the most common?
◉ variable. Answer: Which type of annuity attempts to offset inflation
by providing a benefit linked to an underlying investment account?
◉ Death Benefit. Answer: In a level term life policy, which ALWAYS
remains constant?
◉ Variable Life, Whole Life, Universal Life. Answer: Which of the
following lists the three common types of permanent individual life
insurance?
◉ It has a guaranteed minimum interest rate.. Answer: Which of the
following is TRUE of an equity-indexed annuity?
, ◉ interest rates. Answer: Current assumption whole life policies are
sensitive to which of the following?
◉ The purchaser has the option to vary the amount of each premium
payment falling between a minimum and maximum amount.. Answer:
Which of the following is TRUE for a flexible premium annuity?
◉ Coverage continues after the policy is paid-up.. Answer: Which of the
following is TRUE of the limited pay whole life policy?
◉ It begins with little or no insurance protection.. Answer: Which of the
following is common in an increasing term life policy?
◉ Joint and survivorship option. Answer: Which annuity settlement
option provides a stated monthly amount to the annuitant and upon the
annuitant?s death the same or a lesser amount paid for the lifetime of the
survivor?
◉ The proceeds are divided equally among living primary beneficiaries..
Answer: How does the per capita rule apply to proceeds from a life
insurance policy?
◉ commiting a misdemeanor. Answer: All of the following are common
exclusions from loss found in disability income policies EXCEPT for
that incurred while
WITH SOLUTIONS GRADED A+
◉ Variable Universal Life. Answer: Which policy type is backed by
equity investments and allows the policyholder to adjust the death
benefit?
◉ Continuous Premium. Answer: Which whole life policy premium type
is the most common?
◉ variable. Answer: Which type of annuity attempts to offset inflation
by providing a benefit linked to an underlying investment account?
◉ Death Benefit. Answer: In a level term life policy, which ALWAYS
remains constant?
◉ Variable Life, Whole Life, Universal Life. Answer: Which of the
following lists the three common types of permanent individual life
insurance?
◉ It has a guaranteed minimum interest rate.. Answer: Which of the
following is TRUE of an equity-indexed annuity?
, ◉ interest rates. Answer: Current assumption whole life policies are
sensitive to which of the following?
◉ The purchaser has the option to vary the amount of each premium
payment falling between a minimum and maximum amount.. Answer:
Which of the following is TRUE for a flexible premium annuity?
◉ Coverage continues after the policy is paid-up.. Answer: Which of the
following is TRUE of the limited pay whole life policy?
◉ It begins with little or no insurance protection.. Answer: Which of the
following is common in an increasing term life policy?
◉ Joint and survivorship option. Answer: Which annuity settlement
option provides a stated monthly amount to the annuitant and upon the
annuitant?s death the same or a lesser amount paid for the lifetime of the
survivor?
◉ The proceeds are divided equally among living primary beneficiaries..
Answer: How does the per capita rule apply to proceeds from a life
insurance policy?
◉ commiting a misdemeanor. Answer: All of the following are common
exclusions from loss found in disability income policies EXCEPT for
that incurred while
