IOWA LIFE EXAM 2025 QUESTIONS
AND ANSWERS
Which of these needs is satisfied by Adjustable Life insurance? - ANS insured's need for
flexible premiums
K is shopping for a permanent life insurance policy that will offer her the most protection per
dollar of annual premium. Which of these policies best fits her needs? - ANS Straight life
What type of policy has a death benefit that adjusts periodically and is written for a specific
period of time? - ANS decreasing term
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases
in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind
of policy is this? - ANS Modified Whole Life
Which provision allows the policyowner to change a term life policy to a permanent one
without providing proof of good health? - ANS conversion
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile
accident. How much will the insurance company pay the beneficiary? - ANS $20,000 death
benefit
A policy that becomes a Modified Endowment Contract (MEC): - ANS will lose many of its tax
advantages
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,When is the face amount paid under a Joint Life and Survivor policy? - ANS upon death of the
last insured
Which of these statements describe a Modified Endowlment Center? - ANS Exceeds the
maximum amount of premium that can be paid into a policy and still have it recognized as a life
insurance contract
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds,
but will still protect the principal with a minimum level of risk. Which product would S be
advisesd to purchase? - ANS Equity index insurance
All of these statements about Equity Indexed Life Insurance are correct, except: - ANS the
premiums can be lowered or raised, based on investment performance
Under a Renewable Term policy, - ANS the renewal premium is calculated on the basis of the
insured's attained age
What type of life policy covers two people and pays upon the death of the last insured? -
ANS Survivorship
Which of these is an element of a Variable Life policy? - ANS a fixed, level premium
D needs life insurance that provides coverage for only a limited amount of time while also
paying the lowest possible premium. What kind of policy is needed? - ANS Level term
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner
can see the interest earned, expense charges, and the - ANS expense charges
Term insurance has which of the following characteristics? - ANS expires at the end of the
policy period
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, When a policyowner exchanges a term policy for a whole life policy without providing proof of
good health, which of these apply? - ANS Conversion provision
A _____________ Life policy offers the owner investment in products such as money-market
funds, long-term bonds and eequities. - ANS Variable
Which statement is true regarding a Variable Whole Life policy? - ANS a minimum
guaranteed Death benefit is provided
Which of the following actions is not possible with a Universal Life policy? - ANS premiums
may be applied as a credit against income tax
A company that owns a life insurance policy on one of its key employees may do all the
following except: - ANS change the policy's interest rate
Additional coverage can be added to a Whole Life policy by adding a: - ANS decreasing term
rider
P is looking to purchase a life insurance policy that will pay a stated monthly income to his
beneficiaries to 20 years after he dies and a lump sum of $20,000 at the end of that 20 year
period. What type of policy should P purchase? - ANS Family Maintenance policy
A life insurance policy that provides a policyowner with cash value along with a level face
amount is called: - ANS Whole life
What does a Face Amount Plus Cash Value Policy pay upon the insured's death? - ANS Face
amount plus the policy's cash value
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AND ANSWERS
Which of these needs is satisfied by Adjustable Life insurance? - ANS insured's need for
flexible premiums
K is shopping for a permanent life insurance policy that will offer her the most protection per
dollar of annual premium. Which of these policies best fits her needs? - ANS Straight life
What type of policy has a death benefit that adjusts periodically and is written for a specific
period of time? - ANS decreasing term
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases
in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind
of policy is this? - ANS Modified Whole Life
Which provision allows the policyowner to change a term life policy to a permanent one
without providing proof of good health? - ANS conversion
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile
accident. How much will the insurance company pay the beneficiary? - ANS $20,000 death
benefit
A policy that becomes a Modified Endowment Contract (MEC): - ANS will lose many of its tax
advantages
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,When is the face amount paid under a Joint Life and Survivor policy? - ANS upon death of the
last insured
Which of these statements describe a Modified Endowlment Center? - ANS Exceeds the
maximum amount of premium that can be paid into a policy and still have it recognized as a life
insurance contract
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds,
but will still protect the principal with a minimum level of risk. Which product would S be
advisesd to purchase? - ANS Equity index insurance
All of these statements about Equity Indexed Life Insurance are correct, except: - ANS the
premiums can be lowered or raised, based on investment performance
Under a Renewable Term policy, - ANS the renewal premium is calculated on the basis of the
insured's attained age
What type of life policy covers two people and pays upon the death of the last insured? -
ANS Survivorship
Which of these is an element of a Variable Life policy? - ANS a fixed, level premium
D needs life insurance that provides coverage for only a limited amount of time while also
paying the lowest possible premium. What kind of policy is needed? - ANS Level term
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner
can see the interest earned, expense charges, and the - ANS expense charges
Term insurance has which of the following characteristics? - ANS expires at the end of the
policy period
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, When a policyowner exchanges a term policy for a whole life policy without providing proof of
good health, which of these apply? - ANS Conversion provision
A _____________ Life policy offers the owner investment in products such as money-market
funds, long-term bonds and eequities. - ANS Variable
Which statement is true regarding a Variable Whole Life policy? - ANS a minimum
guaranteed Death benefit is provided
Which of the following actions is not possible with a Universal Life policy? - ANS premiums
may be applied as a credit against income tax
A company that owns a life insurance policy on one of its key employees may do all the
following except: - ANS change the policy's interest rate
Additional coverage can be added to a Whole Life policy by adding a: - ANS decreasing term
rider
P is looking to purchase a life insurance policy that will pay a stated monthly income to his
beneficiaries to 20 years after he dies and a lump sum of $20,000 at the end of that 20 year
period. What type of policy should P purchase? - ANS Family Maintenance policy
A life insurance policy that provides a policyowner with cash value along with a level face
amount is called: - ANS Whole life
What does a Face Amount Plus Cash Value Policy pay upon the insured's death? - ANS Face
amount plus the policy's cash value
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