1|Page
PEARSON VUE LIFE INSURANCE EXAM VERSION 1,2 AND 3 NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
An individual is purchasing a permanent life insurance policy with
a face value of $25,000. While this is all the insurance that he can
afford at this time, he wants to be sure that additional coverage
will be available in the future. Which of the following options
should be included in the policy?
A. Guaranteed insurability option
B. Dividend options
C. Guaranteed renewable option
D. Nonforfeiture options - ANSWER-Guaranteed insurability
option
An individual purchased a $100,000 Joint life policy on himself
and his wife. Eight years later, he died in an automobile accident.
How much will his wife receive from the policy?
A. nothing
B. $50,000
C. $100,000
,2|Page
D. $200,000 - ANSWER-$100,000
Most policies will pay the accidental death benefits as long as the
death is caused by the caused by the accident and occurs within
A. 30 days
B. 60 days
C. 90 days
D. 120 days - ANSWER-90 days
Which of the following includes information regarding a person's
credit, character, reputation, and habits?
A. Consumer history
B. Insurability report
C. Agent's report
D. Consumer report - ANSWER-Consumer report
When an insured under a life insurance policy died, the
designated beneficiary received the face amount of the policy, as
well as a refund of all of the premiums paid
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A. Return of premium
B. cost of living
C. decreasing term
D. Accidental death - ANSWER-return of premium
Which of the following is true regarding elimination periods and
the cost of coverage?
A. The longer the elimination period, the higher the cost of
coverage
B. Elimination periods have no effect on the cost of coverage
C. The longer the elimination period, the lower the cost of
coverage
D. The shorter the elimination period, the lower the cost of
coverage - ANSWER-The longer the elimination period, the lower
the cost of coverage
Most LTC plans have which of the following features?
A. Open enrollment
B. Guarantee renewability
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C. NO elimination period
D. Variable premiums - ANSWER-guarantee renewability
A straight life policy has what type of premium?
A. A decreasing annual premium for the life of the insured
B. A variable annual premium for the life of the insured
C. A level annual premium for the life of the insured
D. An increasing annual premium for the life of the insured -
ANSWER-A level annual premium for the life of the insured
A father owns a life insurance policy on his 15-year-old daughter.
The policy contains the optional Payor Benefit rider. If the father
becomes disabled, what will happen to the life insurance
premiums?
A. The premiums will become tax deductible until the insured's
18th birthday
B. Since it is the policyowner, and not the insured, who has
become disabled, the life insurance policy will not be affected
PEARSON VUE LIFE INSURANCE EXAM VERSION 1,2 AND 3 NEWEST
2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
An individual is purchasing a permanent life insurance policy with
a face value of $25,000. While this is all the insurance that he can
afford at this time, he wants to be sure that additional coverage
will be available in the future. Which of the following options
should be included in the policy?
A. Guaranteed insurability option
B. Dividend options
C. Guaranteed renewable option
D. Nonforfeiture options - ANSWER-Guaranteed insurability
option
An individual purchased a $100,000 Joint life policy on himself
and his wife. Eight years later, he died in an automobile accident.
How much will his wife receive from the policy?
A. nothing
B. $50,000
C. $100,000
,2|Page
D. $200,000 - ANSWER-$100,000
Most policies will pay the accidental death benefits as long as the
death is caused by the caused by the accident and occurs within
A. 30 days
B. 60 days
C. 90 days
D. 120 days - ANSWER-90 days
Which of the following includes information regarding a person's
credit, character, reputation, and habits?
A. Consumer history
B. Insurability report
C. Agent's report
D. Consumer report - ANSWER-Consumer report
When an insured under a life insurance policy died, the
designated beneficiary received the face amount of the policy, as
well as a refund of all of the premiums paid
,3|Page
A. Return of premium
B. cost of living
C. decreasing term
D. Accidental death - ANSWER-return of premium
Which of the following is true regarding elimination periods and
the cost of coverage?
A. The longer the elimination period, the higher the cost of
coverage
B. Elimination periods have no effect on the cost of coverage
C. The longer the elimination period, the lower the cost of
coverage
D. The shorter the elimination period, the lower the cost of
coverage - ANSWER-The longer the elimination period, the lower
the cost of coverage
Most LTC plans have which of the following features?
A. Open enrollment
B. Guarantee renewability
, 4|Page
C. NO elimination period
D. Variable premiums - ANSWER-guarantee renewability
A straight life policy has what type of premium?
A. A decreasing annual premium for the life of the insured
B. A variable annual premium for the life of the insured
C. A level annual premium for the life of the insured
D. An increasing annual premium for the life of the insured -
ANSWER-A level annual premium for the life of the insured
A father owns a life insurance policy on his 15-year-old daughter.
The policy contains the optional Payor Benefit rider. If the father
becomes disabled, what will happen to the life insurance
premiums?
A. The premiums will become tax deductible until the insured's
18th birthday
B. Since it is the policyowner, and not the insured, who has
become disabled, the life insurance policy will not be affected
