Nevada Life & Health Insurance ACTUAL EXAM QUESTIONS WITH
Nevada Life & Health Insurance
COMPLETE SOLUTION GUIDE (A+ GRADED 100% VERIFIED) LATEST
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VERSION 2025!!
1. term insurance temporary protection because it only provides coverage for a specific period of
time
2. face amount death benefit
3. 3 basic types of level, increasing, decreasing
term coverage
- based on how the face amount changes during the policy term
4. What is the premi- regardless of type of term insurance purchased, premium is level throughout
um in term insur- the term of policy
ance?
5. level term insur- death benefit does not change throughout the life of the policy
ance
6. annually renew- premium increases annually according to the attained age, guaranteed to be
able term renewable each year
7. decreasing term level premium and death benefit that decreases each year over duration of the
policy term
8. increasing term level premium and death benefit that increases each year over the duration of
the policy term
9. return of premium an increasing term policy that pays an additional death beneficiary equal to the
life insurance 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
10. renewable provi- allows the policyowner the right to renew coverage at the expiration date
sion without evidence of insurability
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11. convertible provi- provides the policyowner the right to convert the policy to a permanent insur-
sion ance policy without evidence of insurability
12. permanent life in- general term used to refer to various forms of life insurance policies that build
surance cash value and remain in effect for the entire life of the insured (or until age
100) as long as premium is paid
13. nonforteiture val- aka cash value, does not usually accumulate until the third policy year and it
ue grows tax deferred
14. key characteristics - level premium
of whole life insur- - death benefit
ance - cash value
- living benefits
15. 3 basic forms of 1. straight (ordinary) whole life
whole life insur- 2. limited-pay whole life
ance 3. single premium whole life
16. straight life 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
17. limited-pay whole designed so that premiums for coverage will be completely paid-up well before
life age 100
- cash value builds up faster
18. single premium designed to provide a level death benefit to the insured's age 100 for a
whole life one-time, lump-sum payment
- generate immediate cash value
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19. adjustable life 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
20. adjustable life only develops when the premiums paid are more than the cost of the policy
cash value
21. universal life (flex- policyowner has the flexibility to increase/decrease amount of premium paid
ible premium ad- into policy; policyowner may skip paying a premium and policy will not lapse
justable life) as long as there is sufficient cash value at the time to cover monthly deductions
for cost of insurance
22. universal life pre- 1. minimum premium: amount needed to keep policy in force for year
mium types 2. target premium: recommended amount to keep policy in force for lifetime
23. 2 death benefit op- 1. Option A
tions for universal 2. Option B
life
24. Option A (Level death benefit remains level while cash value gradually increases, lowing the
Death Benefit op- "pure insurance" with insurer in later years
tion)
- death benefit increases near the end in order to maintain gap between cash
value and death benefit in life insurance policy
25. Option B (Increas- death benefit includes annual increase in cash value so that death benefit
ing Death Benefit gradually increases each year by amount that cash value increases
option)
- pure insurance remains level for life
26. variable whole life level, fixed premium, investment-based product; cash value of policy is not
guaranteed and fluctuates with performance of the portfolio in which premiums
have been invested by insurer
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27. variable universal combination of universal life and variable life; provides policy owner with flexible
life premiums and adjustable death benefit, policyowner decides where cash value
will be invested (not guaranteed)
28. interest-sensitive whole life policy that provides a guaranteed death benefit to age 100 and for a
whole life minimum guaranteed rate of interest
29. indexed whole life cash value is dependent upon the performance of the equity index although
there is a guaranteed minimum interest rate
30. joint life single policy that is designed to insure two or more lives; premium is less than
for same type for individuals
31. survivorship life same as joint life except pays on the last death rather than upon the first death;
(second to die) joint life expectancy is extended, resulting in lower premium
32. annuity a contract that provides income for a specified period of years, or for life;
protects a person against outliving his or her money
33. annuity owner purchaser of annuity contract, not necessarily the one who receives benefits;
has all the rights
34. annuitant person who receives benefits or payments from annuity, whose life expectancy
is taken into consideration, and for whom the annuity is written; must be a
natural person
35. annuity beneficia- person who receives annuity assets if the annuitant dies during the accumula-
ry tion period, or to whom the balance of annuity benefits is paid out
36. accumulation peri- period of time over which the owner makes payments (premiums) into an
od annuity; payments earn interest on tax-deferred basis
37. annuitization peri- the time during which the sum that has been accumulated is converted into a
od stream of income payments for the annuitant
Nevada Life & Health Insurance
COMPLETE SOLUTION GUIDE (A+ GRADED 100% VERIFIED) LATEST
Study online at https://quizlet.com/_3a14wc
VERSION 2025!!
1. term insurance temporary protection because it only provides coverage for a specific period of
time
2. face amount death benefit
3. 3 basic types of level, increasing, decreasing
term coverage
- based on how the face amount changes during the policy term
4. What is the premi- regardless of type of term insurance purchased, premium is level throughout
um in term insur- the term of policy
ance?
5. level term insur- death benefit does not change throughout the life of the policy
ance
6. annually renew- premium increases annually according to the attained age, guaranteed to be
able term renewable each year
7. decreasing term level premium and death benefit that decreases each year over duration of the
policy term
8. increasing term level premium and death benefit that increases each year over the duration of
the policy term
9. return of premium an increasing term policy that pays an additional death beneficiary equal to the
life insurance 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
10. renewable provi- allows the policyowner the right to renew coverage at the expiration date
sion without evidence of insurability
, Nevada Life & Health Insurance
Study online at https://quizlet.com/_3a14wc
11. convertible provi- provides the policyowner the right to convert the policy to a permanent insur-
sion ance policy without evidence of insurability
12. permanent life in- general term used to refer to various forms of life insurance policies that build
surance cash value and remain in effect for the entire life of the insured (or until age
100) as long as premium is paid
13. nonforteiture val- aka cash value, does not usually accumulate until the third policy year and it
ue grows tax deferred
14. key characteristics - level premium
of whole life insur- - death benefit
ance - cash value
- living benefits
15. 3 basic forms of 1. straight (ordinary) whole life
whole life insur- 2. limited-pay whole life
ance 3. single premium whole life
16. straight life 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
17. limited-pay whole designed so that premiums for coverage will be completely paid-up well before
life age 100
- cash value builds up faster
18. single premium designed to provide a level death benefit to the insured's age 100 for a
whole life one-time, lump-sum payment
- generate immediate cash value
, Nevada Life & Health Insurance
Study online at https://quizlet.com/_3a14wc
19. adjustable life 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
20. adjustable life only develops when the premiums paid are more than the cost of the policy
cash value
21. universal life (flex- policyowner has the flexibility to increase/decrease amount of premium paid
ible premium ad- into policy; policyowner may skip paying a premium and policy will not lapse
justable life) as long as there is sufficient cash value at the time to cover monthly deductions
for cost of insurance
22. universal life pre- 1. minimum premium: amount needed to keep policy in force for year
mium types 2. target premium: recommended amount to keep policy in force for lifetime
23. 2 death benefit op- 1. Option A
tions for universal 2. Option B
life
24. Option A (Level death benefit remains level while cash value gradually increases, lowing the
Death Benefit op- "pure insurance" with insurer in later years
tion)
- death benefit increases near the end in order to maintain gap between cash
value and death benefit in life insurance policy
25. Option B (Increas- death benefit includes annual increase in cash value so that death benefit
ing Death Benefit gradually increases each year by amount that cash value increases
option)
- pure insurance remains level for life
26. variable whole life level, fixed premium, investment-based product; cash value of policy is not
guaranteed and fluctuates with performance of the portfolio in which premiums
have been invested by insurer
, Nevada Life & Health Insurance
Study online at https://quizlet.com/_3a14wc
27. variable universal combination of universal life and variable life; provides policy owner with flexible
life premiums and adjustable death benefit, policyowner decides where cash value
will be invested (not guaranteed)
28. interest-sensitive whole life policy that provides a guaranteed death benefit to age 100 and for a
whole life minimum guaranteed rate of interest
29. indexed whole life cash value is dependent upon the performance of the equity index although
there is a guaranteed minimum interest rate
30. joint life single policy that is designed to insure two or more lives; premium is less than
for same type for individuals
31. survivorship life same as joint life except pays on the last death rather than upon the first death;
(second to die) joint life expectancy is extended, resulting in lower premium
32. annuity a contract that provides income for a specified period of years, or for life;
protects a person against outliving his or her money
33. annuity owner purchaser of annuity contract, not necessarily the one who receives benefits;
has all the rights
34. annuitant person who receives benefits or payments from annuity, whose life expectancy
is taken into consideration, and for whom the annuity is written; must be a
natural person
35. annuity beneficia- person who receives annuity assets if the annuitant dies during the accumula-
ry tion period, or to whom the balance of annuity benefits is paid out
36. accumulation peri- period of time over which the owner makes payments (premiums) into an
od annuity; payments earn interest on tax-deferred basis
37. annuitization peri- the time during which the sum that has been accumulated is converted into a
od stream of income payments for the annuitant
