IOWA LIFE INSURANCE: FINAL EXAM
2025 QUESTIONS AND ANSWERS
Group Life Insurance - ANS life insurance that provides a master policy for a group; each
eligible group member receives a certificate of insurance
Individual Life Insurance - ANS purchased by individuals; usually greater face value
Permanent Life vs. Term Life - ANS Perm Life: whole life insurance that is effective for the
entire life of the insured up to age 100.
Term Life: insurance that is effective for a temporary time period, designated by the policy.
Participating Life vs. Nonparticipating Life - ANS Participating Life: policies that pay dividends
to the policy holders.
Nonparticipating Life: policies that pay dividends to shareholders.
Fixed Life vs. Variable Life - ANS Fixed Life: policies earn a constant rate of interest, providing
guaranteed minimum of benefits.
Variable Life: policies earn a fluctuating rate of interest & don't guarantee a certain cash value.
Ordinary (Straight) Life - ANS basic whole life insurance with a level face amount, & level
premiums payable over the insured's entire life.
Limited Payment (LP) Whole Life Policies - ANS the insured is covered for their entire life, but
premiums are pad for a limited time.
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, Single Premium Whole Life Policies - ANS allows the insured to pay the entire premium in
one lump-sum, & have coverage for the insured's entire life.
Adjustable Life - ANS a mix of whole & term life insurance.
Changes that can be made to the policy:
- raise/lower premium
-raise/lower the face amount
-change the coverage period
- change the premium-paying period
Universal Life Insurance - ANS permanent cash-value insurance that combines term
insurance (death benefits) with a tax-sheltered savings/investment account that pays interest,
usually at competitive money market rates
Variable Whole Life - ANS has fixed premiums & a guaranteed minimum death benefit just
like OWL, but differs b/c it offers higher interest rates defending the policyowner against
inflation
Variable Universal Life - ANS product that blends many features of whole life, universal life,
and variable life. Key features are premium flexibility, cash value investment control, and death
benefit flexibility.
Interest Sensitive Whole Life - ANS Premiums vary to reflect the insurer's changing
assumptions with regard to death investment and expense factors.
Equity-Indexed Universal Life - ANS Equity-indexed universal life works the same way as
universal life insurance except the interest rate is tied to a stock market index.
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2025 QUESTIONS AND ANSWERS
Group Life Insurance - ANS life insurance that provides a master policy for a group; each
eligible group member receives a certificate of insurance
Individual Life Insurance - ANS purchased by individuals; usually greater face value
Permanent Life vs. Term Life - ANS Perm Life: whole life insurance that is effective for the
entire life of the insured up to age 100.
Term Life: insurance that is effective for a temporary time period, designated by the policy.
Participating Life vs. Nonparticipating Life - ANS Participating Life: policies that pay dividends
to the policy holders.
Nonparticipating Life: policies that pay dividends to shareholders.
Fixed Life vs. Variable Life - ANS Fixed Life: policies earn a constant rate of interest, providing
guaranteed minimum of benefits.
Variable Life: policies earn a fluctuating rate of interest & don't guarantee a certain cash value.
Ordinary (Straight) Life - ANS basic whole life insurance with a level face amount, & level
premiums payable over the insured's entire life.
Limited Payment (LP) Whole Life Policies - ANS the insured is covered for their entire life, but
premiums are pad for a limited time.
1 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
, Single Premium Whole Life Policies - ANS allows the insured to pay the entire premium in
one lump-sum, & have coverage for the insured's entire life.
Adjustable Life - ANS a mix of whole & term life insurance.
Changes that can be made to the policy:
- raise/lower premium
-raise/lower the face amount
-change the coverage period
- change the premium-paying period
Universal Life Insurance - ANS permanent cash-value insurance that combines term
insurance (death benefits) with a tax-sheltered savings/investment account that pays interest,
usually at competitive money market rates
Variable Whole Life - ANS has fixed premiums & a guaranteed minimum death benefit just
like OWL, but differs b/c it offers higher interest rates defending the policyowner against
inflation
Variable Universal Life - ANS product that blends many features of whole life, universal life,
and variable life. Key features are premium flexibility, cash value investment control, and death
benefit flexibility.
Interest Sensitive Whole Life - ANS Premiums vary to reflect the insurer's changing
assumptions with regard to death investment and expense factors.
Equity-Indexed Universal Life - ANS Equity-indexed universal life works the same way as
universal life insurance except the interest rate is tied to a stock market index.
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
