LIFE INSURANCE POLICIES STUDY GUIDE 70 QUESTIONS AND
CORRECT ANSWERS | COMPLETE 2025–2026 EXAM PREP | POLICY
TYPES, FEATURES & COMPARISONS
Get exam-ready with this comprehensive and high-yield study set on life
insurance policy structures and features. You’ll master the differences
between term and permanent coverage, understand how cash value impacts
policy longevity, and know when a policy is interest-sensitive or convertible.
Whether you're reviewing adjustable life mechanics, death benefit variations,
or group policy eligibility, this guide is packed with must-know material to help
you pass with confidence. Each question mirrors real exam style, helping you
retain critical concepts faster.
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse
as long as
a. the next month's premium is sufficient to cover both the current premium amount and the
skipped amount
b. the policy contains sufficient cash value to cover the cost of insurance
c. the previous premium payments were high enough to create an excess of premium
d. the policyowner cannot skip premiums without the policy lapsing - CORRECT ANSWER-b. the
policy contains sufficient cash value to cover the cost of insurance
The type of policy that can be changed from one that does not accumulate cash value to the one
that does is a
a. convertible term policy
b. renewable term policy
c. decreasing term policy
d. whole life policy - CORRECT ANSWER-a. convertible term policy
An insurance policy that only requires a payment of premium at its inception, provides insurance
protection for the life of the insured, and matures at the insured's age 100 is called
a. modified endowment contract (MEC)
b. level term life
c. graded premium whole life
, d. single premium whole life - CORRECT ANSWER-d. single premium whole life
A return of premium term life policy is written as hat type of term coverage?
a. renewable
b. level
c. increasing
d. decreasing - CORRECT ANSWER-c. increasing
Which of the following is called a "second to die" policy?
a. juvenile life
b. joint life
c. survivorship life
d. family income - CORRECT ANSWER-c. survivorship life
An adjustable life policyowner can change which of the following policy features?
a. the mortality expense
b. the investment account
c. the insured
d. the coverage period - CORRECT ANSWER-d. the coverage period
Which of the following life insurance policies would be considered interest sensitive?
a. whole life
b. increasing term
c. universal life
d. adjustable life - CORRECT ANSWER-c. universal life
All of the following could own group life insurance EXCEPT
a. a group needing low-cost life insurance
b. a group sponsored by an employer
c. an alumni group
d. a debtor group - CORRECT ANSWER-a. a group needing low-cost life insurance
CORRECT ANSWERS | COMPLETE 2025–2026 EXAM PREP | POLICY
TYPES, FEATURES & COMPARISONS
Get exam-ready with this comprehensive and high-yield study set on life
insurance policy structures and features. You’ll master the differences
between term and permanent coverage, understand how cash value impacts
policy longevity, and know when a policy is interest-sensitive or convertible.
Whether you're reviewing adjustable life mechanics, death benefit variations,
or group policy eligibility, this guide is packed with must-know material to help
you pass with confidence. Each question mirrors real exam style, helping you
retain critical concepts faster.
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse
as long as
a. the next month's premium is sufficient to cover both the current premium amount and the
skipped amount
b. the policy contains sufficient cash value to cover the cost of insurance
c. the previous premium payments were high enough to create an excess of premium
d. the policyowner cannot skip premiums without the policy lapsing - CORRECT ANSWER-b. the
policy contains sufficient cash value to cover the cost of insurance
The type of policy that can be changed from one that does not accumulate cash value to the one
that does is a
a. convertible term policy
b. renewable term policy
c. decreasing term policy
d. whole life policy - CORRECT ANSWER-a. convertible term policy
An insurance policy that only requires a payment of premium at its inception, provides insurance
protection for the life of the insured, and matures at the insured's age 100 is called
a. modified endowment contract (MEC)
b. level term life
c. graded premium whole life
, d. single premium whole life - CORRECT ANSWER-d. single premium whole life
A return of premium term life policy is written as hat type of term coverage?
a. renewable
b. level
c. increasing
d. decreasing - CORRECT ANSWER-c. increasing
Which of the following is called a "second to die" policy?
a. juvenile life
b. joint life
c. survivorship life
d. family income - CORRECT ANSWER-c. survivorship life
An adjustable life policyowner can change which of the following policy features?
a. the mortality expense
b. the investment account
c. the insured
d. the coverage period - CORRECT ANSWER-d. the coverage period
Which of the following life insurance policies would be considered interest sensitive?
a. whole life
b. increasing term
c. universal life
d. adjustable life - CORRECT ANSWER-c. universal life
All of the following could own group life insurance EXCEPT
a. a group needing low-cost life insurance
b. a group sponsored by an employer
c. an alumni group
d. a debtor group - CORRECT ANSWER-a. a group needing low-cost life insurance
