Primerica LIFE INSURANCE Practice test part 1 WITH 100% CORRECT ANSWERS 2024

1. An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? a) Estate liquidation b) Nonpayment of premium c) Change of beneficiary d) Viatical settlement Answer : d 2. Which of the following best describes fixed-period settlement option? a) Only the principal amount will be paid out within a specified period of time. b) The death benefit must be paid out in a lump sum within a certain time period. c) Income is guaranteed for the life of the beneficiary. d) Both the principal and interest will be liquidated over a selected period of time. Answer : d 3. Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-mak- ing process? a) Insurance Index b) Policy Summary c) Illustrations d) Buyer's Guide Answer : d 4. Which of the following is called a "second-to-die" policy? a) Juvenile life b) Joint life c) Survivorship life d) Family income Answer : c 5. Which of the following best describes annually renewable term insurance? a) Neither the premium nor the death benefit is affected by the insured's age. b) It provides an annually increasing death benefit. c) It is level term insurance. d) It requires proof of insurability at each renewal. Answer : c