LIFE INSURANCE EXAM ILLINOIS UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ The statement which best describes the relationship between
the premiums of a whole life policy and the premium payment
period is
The shorter the payment period, the lower the premium
The longer the payment period, the higher the premium
The shorter the payment period, the higher the premium
The payment period has no affect on the premium payment
Answer: The shorter the payment period, the higher the premium
◉ Which of these riders will pay a death benefit if the insured's
spouse dies?
Guaranteed Insurability rider
Family term insurance rider
Family whole insurance rider
Payor benefit rider
Answer: Family term insurance rider
◉ All of these are characteristics of a universal life insurance
policy EXCEPT
Flexible death benefit
,All of these are characteristics of a universal life insurance policy
EXCEPT
Flexible death benefit
Fixed surrender value
Flexible premiums
Builds cash value
Answer: Fixed surrender value
◉ Variable life insurance and Universal life insurance are very
similar. Which of these features are held exclusively by variable
universal life insurance?
Policyowner may increase or decrease the premium payments
Policyowner may increase or decrease the face amount
Policyowner can contribute large sums of money
Policyowner has the right to select the investment which will
provide the greatest return
Answer: Policyowner has the right to select the investment which
will provide the greatest return
◉ Level premium permanent insurance accumulates a reserve
that will eventually
equal the face amount of the policy
pay a dividend to the policyowner
require the policyowner to make periodic withdrawals
become larger than the face amount
, Answer: equal the face amount of the policy
◉ Which type of life insurance policy pays the face amount at the
end of the specified period if the insured is still alive?
Adjustable life policy
Modified life policy
Endowment policy
Universal life policy
Answer: Endowment policy
◉ Peter has a policy where 80% to 90% of the premium is
invested in traditional fixed income securities and the remainder
of the premium is invested in contracts tied to a stipulated stock
index. What kind of policy is this?
Modified Endowment Contract
Current assumptive whole life
Credit life insurance
Equity index whole life
Answer: Equity index whole life
◉ A Renewable Term Life insurance policy can be renewed
at a predetermined date or age, regardless of the insured's health
only if the insured provides evidence of insurability
anytime at the policyowner's request
ACTUAL QUESTIONS AND CORRECT
ANSWERS
◉ The statement which best describes the relationship between
the premiums of a whole life policy and the premium payment
period is
The shorter the payment period, the lower the premium
The longer the payment period, the higher the premium
The shorter the payment period, the higher the premium
The payment period has no affect on the premium payment
Answer: The shorter the payment period, the higher the premium
◉ Which of these riders will pay a death benefit if the insured's
spouse dies?
Guaranteed Insurability rider
Family term insurance rider
Family whole insurance rider
Payor benefit rider
Answer: Family term insurance rider
◉ All of these are characteristics of a universal life insurance
policy EXCEPT
Flexible death benefit
,All of these are characteristics of a universal life insurance policy
EXCEPT
Flexible death benefit
Fixed surrender value
Flexible premiums
Builds cash value
Answer: Fixed surrender value
◉ Variable life insurance and Universal life insurance are very
similar. Which of these features are held exclusively by variable
universal life insurance?
Policyowner may increase or decrease the premium payments
Policyowner may increase or decrease the face amount
Policyowner can contribute large sums of money
Policyowner has the right to select the investment which will
provide the greatest return
Answer: Policyowner has the right to select the investment which
will provide the greatest return
◉ Level premium permanent insurance accumulates a reserve
that will eventually
equal the face amount of the policy
pay a dividend to the policyowner
require the policyowner to make periodic withdrawals
become larger than the face amount
, Answer: equal the face amount of the policy
◉ Which type of life insurance policy pays the face amount at the
end of the specified period if the insured is still alive?
Adjustable life policy
Modified life policy
Endowment policy
Universal life policy
Answer: Endowment policy
◉ Peter has a policy where 80% to 90% of the premium is
invested in traditional fixed income securities and the remainder
of the premium is invested in contracts tied to a stipulated stock
index. What kind of policy is this?
Modified Endowment Contract
Current assumptive whole life
Credit life insurance
Equity index whole life
Answer: Equity index whole life
◉ A Renewable Term Life insurance policy can be renewed
at a predetermined date or age, regardless of the insured's health
only if the insured provides evidence of insurability
anytime at the policyowner's request
