Florida Life, Health and Variable Annuity
Exam/ 170+ Q&A/ 2024-2025.
Increasing Term Insurance - Answer: insurance that provides a death benefit that increases at
periodic intervals over the policy's term. Usually used to cover a BUY SELL AGREEMENT and is
usually purchased as a COST-OF-LIVING RIDER.
Features of Term Life - Answer: option to renew an option to convert
Option to Renew - Answer: allows policyowner to renew the term policy before its termination
date without having to provide evidence of insurability/good health.
Option to Convert - Answer: gives the insured the right to convert or exchange the term policy
for a whole life(or permanent) plan without evidence of insurability.
Page 1 of 22
,Whole Life Insurance - Answer: also known as permanent or cash value insurance, provides
permanent protection for the whole of life and you pay premiums which are locked in for the
entire life as well as the benefit which is also constant throughout the life. Designed to mature
at age 100. Invest in bonds, treasuries and mortgages to guarantee it endows.
Endow - Answer: when cash value = death benefit
Basic Forms of Whole Life - Answer: straight whole life, limited pay whole life and single-
premium whole life
Straight Whole Life - Answer: whole life insurance providing permanent level protection with
level premiums from the time the policy is issued until the insured's death(or age 100). Most
affordable-longer you pay the more affordable.
Limited Pay Whole Life - Answer: have level premiums that are limited to a certain period(less
than life). The period can be of any duration. Ex: 20-pay life, pay premiums for 20 years and
then you are fully covered until your 100.
Single Premium Whole Life - Answer: involves a large one-time-only premium payment at the
beginning of the policy period and from that point on the policy is completely paid for.
Categories of Life Insurance - Answer: Ordinary, Industrial and Group
Ordinary Life - Answer: is individual life insurance that includes many types of TERM and
PERMANENT insurance and is usually paid with monthly premiums. Is the principal type of life
insurance purchased in the United States.
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, Industrial Insurance - Answer: small issue amounts with premiums collected weekly or monthly
by agents at policyowner's home. Also known as BURIAL INSURANCE
Group Insurance - Answer: written for employer-employee groups to provide coverage for a
number of individuals under one contract. Underwriting is based on the group and not the
individual. Premiums are lower but when you leave it gets expensive.
Term Life Insurance - Answer: simplest type of life insurance, provides insurance protection for
a specified period and pays a benefit only if the insured dies during the period. Like renting your
insurance but it's more affordable but as you get older it goes up.(No Equity)
Forms of Term Life Insurance - Answer: level, decreasing and increasing
Level Term Insurance - Answer: provides a level amount of protection for a specified period,
after which the policy expires. Level premium and level death benefit
Decreasing Term Insurance - Answer: characterized by benefit amounts that decrease gradually
over the term of protection but the premium stays the same throughout. Used to cover LOANS
or MORTGAGES.
Modified Whole Life - Answer: distinguished by premiums that are lower than typical whole life
premiums during the first few years(usually 5) and then higher than typical thereafter. Designed
to make initial purchase of insurance easier and more attractive with a promise of an improved
financial position in the future.
Endowment Policies - Answer: endows at the end of the premium paying period, always before
age 100. Normally for college funding but is taxed every year and is not popular.
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Exam/ 170+ Q&A/ 2024-2025.
Increasing Term Insurance - Answer: insurance that provides a death benefit that increases at
periodic intervals over the policy's term. Usually used to cover a BUY SELL AGREEMENT and is
usually purchased as a COST-OF-LIVING RIDER.
Features of Term Life - Answer: option to renew an option to convert
Option to Renew - Answer: allows policyowner to renew the term policy before its termination
date without having to provide evidence of insurability/good health.
Option to Convert - Answer: gives the insured the right to convert or exchange the term policy
for a whole life(or permanent) plan without evidence of insurability.
Page 1 of 22
,Whole Life Insurance - Answer: also known as permanent or cash value insurance, provides
permanent protection for the whole of life and you pay premiums which are locked in for the
entire life as well as the benefit which is also constant throughout the life. Designed to mature
at age 100. Invest in bonds, treasuries and mortgages to guarantee it endows.
Endow - Answer: when cash value = death benefit
Basic Forms of Whole Life - Answer: straight whole life, limited pay whole life and single-
premium whole life
Straight Whole Life - Answer: whole life insurance providing permanent level protection with
level premiums from the time the policy is issued until the insured's death(or age 100). Most
affordable-longer you pay the more affordable.
Limited Pay Whole Life - Answer: have level premiums that are limited to a certain period(less
than life). The period can be of any duration. Ex: 20-pay life, pay premiums for 20 years and
then you are fully covered until your 100.
Single Premium Whole Life - Answer: involves a large one-time-only premium payment at the
beginning of the policy period and from that point on the policy is completely paid for.
Categories of Life Insurance - Answer: Ordinary, Industrial and Group
Ordinary Life - Answer: is individual life insurance that includes many types of TERM and
PERMANENT insurance and is usually paid with monthly premiums. Is the principal type of life
insurance purchased in the United States.
Page 2 of 22
, Industrial Insurance - Answer: small issue amounts with premiums collected weekly or monthly
by agents at policyowner's home. Also known as BURIAL INSURANCE
Group Insurance - Answer: written for employer-employee groups to provide coverage for a
number of individuals under one contract. Underwriting is based on the group and not the
individual. Premiums are lower but when you leave it gets expensive.
Term Life Insurance - Answer: simplest type of life insurance, provides insurance protection for
a specified period and pays a benefit only if the insured dies during the period. Like renting your
insurance but it's more affordable but as you get older it goes up.(No Equity)
Forms of Term Life Insurance - Answer: level, decreasing and increasing
Level Term Insurance - Answer: provides a level amount of protection for a specified period,
after which the policy expires. Level premium and level death benefit
Decreasing Term Insurance - Answer: characterized by benefit amounts that decrease gradually
over the term of protection but the premium stays the same throughout. Used to cover LOANS
or MORTGAGES.
Modified Whole Life - Answer: distinguished by premiums that are lower than typical whole life
premiums during the first few years(usually 5) and then higher than typical thereafter. Designed
to make initial purchase of insurance easier and more attractive with a promise of an improved
financial position in the future.
Endowment Policies - Answer: endows at the end of the premium paying period, always before
age 100. Normally for college funding but is taxed every year and is not popular.
Page 3 of 22
