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LLQP Life insurance Questions with Detailed Verified
Answers
Financial impact of death Ans: ✓ ✓ ✓ Loss of income
Loss of caregiver
Debt repayment
Income taxes
Estate creation (education funds, legacies, charitable giving)
Business impacts
Risk Management Ans: ✓ ✓ ✓ Risk avoidance
Risk reduction
Risk retention
Risk transfer
Joint (First-to-Die) Life Insurance Ans: ✓ ✓ ✓ A type of permanent life coverage that insures two
persons under one policy and that pays the death benefit when the first insured dies. Some
contracts give the surviving life insured the choice of continuing the same level of coverage on their
own life under a new policy without having to provide proof of insurability.
joint last to die Ans: ✓ ✓ ✓ With a joint last-to-die life insurance policy, a single amount of
coverage is placed on two or more lives insured, and the death benefit is paid out upon the death
of the last person to die.
Level term death benefit Ans: ✓ ✓ ✓ The death benefit equals the initial face amount
Decreasing term death benefit Ans: ✓ ✓ ✓ death benefit that decreases over the course of the
term, while the premium remains level. most often used by people who have mortgages.
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Increasing term death benefit Ans: ✓ ✓ ✓ death benefit increases over the course of the term.
The increase in the death benefit is usually applied at predetermined times, such as annually or
every five years. Premiums increase when the death benefit increases.
Renewable Term Insurance Ans: ✓ ✓ ✓ policyholder is guaranteed the right to renew the policy at
the end of the term for another term, without having to provide proof of insurability at the time of
renewal.
Non renewable term insurance Ans: ✓ ✓ ✓ the policy expires at the end of the term, and the
policyholder has to apply for new life insurance
renewable with guaranteed rates Ans: ✓ ✓ ✓ the new premiums will reflect the age of the life
insured at renewal. Most policies provide a guaranteed schedule of renewal rates when the policy is
first issued.
re-entry term with adjustable rates Ans: ✓ ✓ ✓ renewable policy that can be subject to two
different renewal rate schedules: a guaranteed renewal rate and a lower rate that is adjusted for
the good health of the life insured.
Convertible Term Insurance Ans: ✓ ✓ ✓ Convertible term insurance gives the policyholder the
option of converting the term policy to some form of permanent life insurance without proof of
insurability
whole life insurance Ans: ✓ ✓ ✓ Whole life insurance provides coverage for the entire lifetime of
the life insured, with a premium that typically remains level over the duration of the contract. A
whole life policy builds up a cash surrender value (CSV) over time, and if the policyholder
surrenders the policy prior to the death of the life insured, he may be entitled to receive payment
of that CSV, less any surrender charges, if applicable.
Term-100 insurance Ans: ✓ ✓ ✓ Term-100 (T-100) life insurance also provides coverage for the
entire lifetime of the life insured, but the policy matures at age 100, such that premiums are no
longer payable. T-100 policies typically do not have a CSV
Universal life insurance Ans: ✓ ✓ ✓ Universal life (UL) insurance provides coverage for the entire
lifetime of the life insured, but it also includes a savings component that is created through the
deposit of excess premiums. Within certain limits, the policyholder can use a UL policy to
accumulate savings that are completely sheltered from tax if they form part of the death benefit, or
tax-deferred if they are withdrawn prior to death. UL insurance policies are noted for the flexibility
they provide the policyholder.
© Get it right 2025 Getaway - Stuvia US All rights reserved
LLQP Life insurance Questions with Detailed Verified
Answers
Financial impact of death Ans: ✓ ✓ ✓ Loss of income
Loss of caregiver
Debt repayment
Income taxes
Estate creation (education funds, legacies, charitable giving)
Business impacts
Risk Management Ans: ✓ ✓ ✓ Risk avoidance
Risk reduction
Risk retention
Risk transfer
Joint (First-to-Die) Life Insurance Ans: ✓ ✓ ✓ A type of permanent life coverage that insures two
persons under one policy and that pays the death benefit when the first insured dies. Some
contracts give the surviving life insured the choice of continuing the same level of coverage on their
own life under a new policy without having to provide proof of insurability.
joint last to die Ans: ✓ ✓ ✓ With a joint last-to-die life insurance policy, a single amount of
coverage is placed on two or more lives insured, and the death benefit is paid out upon the death
of the last person to die.
Level term death benefit Ans: ✓ ✓ ✓ The death benefit equals the initial face amount
Decreasing term death benefit Ans: ✓ ✓ ✓ death benefit that decreases over the course of the
term, while the premium remains level. most often used by people who have mortgages.
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, Click here for more: Scholars nexus
Increasing term death benefit Ans: ✓ ✓ ✓ death benefit increases over the course of the term.
The increase in the death benefit is usually applied at predetermined times, such as annually or
every five years. Premiums increase when the death benefit increases.
Renewable Term Insurance Ans: ✓ ✓ ✓ policyholder is guaranteed the right to renew the policy at
the end of the term for another term, without having to provide proof of insurability at the time of
renewal.
Non renewable term insurance Ans: ✓ ✓ ✓ the policy expires at the end of the term, and the
policyholder has to apply for new life insurance
renewable with guaranteed rates Ans: ✓ ✓ ✓ the new premiums will reflect the age of the life
insured at renewal. Most policies provide a guaranteed schedule of renewal rates when the policy is
first issued.
re-entry term with adjustable rates Ans: ✓ ✓ ✓ renewable policy that can be subject to two
different renewal rate schedules: a guaranteed renewal rate and a lower rate that is adjusted for
the good health of the life insured.
Convertible Term Insurance Ans: ✓ ✓ ✓ Convertible term insurance gives the policyholder the
option of converting the term policy to some form of permanent life insurance without proof of
insurability
whole life insurance Ans: ✓ ✓ ✓ Whole life insurance provides coverage for the entire lifetime of
the life insured, with a premium that typically remains level over the duration of the contract. A
whole life policy builds up a cash surrender value (CSV) over time, and if the policyholder
surrenders the policy prior to the death of the life insured, he may be entitled to receive payment
of that CSV, less any surrender charges, if applicable.
Term-100 insurance Ans: ✓ ✓ ✓ Term-100 (T-100) life insurance also provides coverage for the
entire lifetime of the life insured, but the policy matures at age 100, such that premiums are no
longer payable. T-100 policies typically do not have a CSV
Universal life insurance Ans: ✓ ✓ ✓ Universal life (UL) insurance provides coverage for the entire
lifetime of the life insured, but it also includes a savings component that is created through the
deposit of excess premiums. Within certain limits, the policyholder can use a UL policy to
accumulate savings that are completely sheltered from tax if they form part of the death benefit, or
tax-deferred if they are withdrawn prior to death. UL insurance policies are noted for the flexibility
they provide the policyholder.
© Get it right 2025 Getaway - Stuvia US All rights reserved
