FPQP Module 5 Exam Questions and Answers Latest Update 2025-2026
single contract that covers a group of people, usually used by employers to cover employees -
Answers Group Life Insurance
1. term life insurance
2. whole life insurance
3. universal life insurance
4. variable life insurance
5. variable universal life insurance - Answers Types of Life insurance
covers someone for a period of time - Answers Term Life insurance
covers for one year, premium goes up every year - Answers Annually Renewable Term Life
Insurance
premium stays the same while the coverage decreases. used when someone wants to use the
insurance to cover a mortgage or loan repayment - Answers Decreasing term life insurance
1. Mortality- death rate
2. Expenses- insurance operating costs
3. Interest- earnings on premium dollars - Answers 3 factors when determining life insurance
premium
insurance that covers someone for their whole life. Premium payments are added up to a cash
value and is tax-deferred. - Answers Whole Life Insurance
Whole life insurance where the insured only pays a premium up to a certain age. This is good for
people who don't want to pay insurance premiums in retirement. - Answers Limited Payment life
insurance
it is a more flexible version of whole life insurance. As long as there is enough money in the
cash value to cover admin fees and cost of insurance, you can make smaller payments or even
skip payments. Can adjust the death benefit higher or lower. As long as the cash value is
enough to cover the cost of insurance and admin fees, the death benefit shouldn't fall below
face value. - Answers Universal life insurance
designed to combine traditional protection and savings functions of life insurance with the
growth potential of investment securities. The death benefit will never go below the face value,
only go up with the market as long as the fixed premium is paid. investment choices are made
by the insured, not the insurer. - Answers Variable Life Insurance
, combines characteristics of universal life insurance and variable life insurance. basically, you
can make flexible premium payments, but there is a possibility that the death benefit could fall
below face value depending on the market performance. - Answers Variable universal life
insurance
Term Life- expires at the end of term
Whole Life- fixed and level
Universal- adjustable, level, or increasing options
Variable- varies with investment performance; face value is guaranteed
VUL- adjustable, level, or increasing options - Answers Death benefit of each type of life
insurance
Term Life- fixed schedule, increases at the end of each term
Whole Life- Fixed schedule, level amount
Universal- Flexible schedule, flexible amount
Variable- fixed schedule, level amount
VUL- flexible schedule, flexible amount - Answers Premiums for each type of life insurance
Term Life- none
Whole Life- Fixed and guaranteed
Universal- Current interest with guaranteed minimum rate
Variable- varies with investment performance. no guaranteed minimum and at risk for loss
VUL- varies with investment performance; no guaranteed minimum and at risk for loss -
Answers Cash values for each type of life insurance
can be a first to die or last to die policy
first to die- upon death of the first person, the face value is paid and the insurance is terminated,
leaving the second person uncovered. this is good for business partners or spouses
last to die- when the last person dies they receive the face value. good for estate planning. -
Answers Joint Life Insurance
single contract that covers a group of people, usually used by employers to cover employees -
Answers Group Life Insurance
1. term life insurance
2. whole life insurance
3. universal life insurance
4. variable life insurance
5. variable universal life insurance - Answers Types of Life insurance
covers someone for a period of time - Answers Term Life insurance
covers for one year, premium goes up every year - Answers Annually Renewable Term Life
Insurance
premium stays the same while the coverage decreases. used when someone wants to use the
insurance to cover a mortgage or loan repayment - Answers Decreasing term life insurance
1. Mortality- death rate
2. Expenses- insurance operating costs
3. Interest- earnings on premium dollars - Answers 3 factors when determining life insurance
premium
insurance that covers someone for their whole life. Premium payments are added up to a cash
value and is tax-deferred. - Answers Whole Life Insurance
Whole life insurance where the insured only pays a premium up to a certain age. This is good for
people who don't want to pay insurance premiums in retirement. - Answers Limited Payment life
insurance
it is a more flexible version of whole life insurance. As long as there is enough money in the
cash value to cover admin fees and cost of insurance, you can make smaller payments or even
skip payments. Can adjust the death benefit higher or lower. As long as the cash value is
enough to cover the cost of insurance and admin fees, the death benefit shouldn't fall below
face value. - Answers Universal life insurance
designed to combine traditional protection and savings functions of life insurance with the
growth potential of investment securities. The death benefit will never go below the face value,
only go up with the market as long as the fixed premium is paid. investment choices are made
by the insured, not the insurer. - Answers Variable Life Insurance
, combines characteristics of universal life insurance and variable life insurance. basically, you
can make flexible premium payments, but there is a possibility that the death benefit could fall
below face value depending on the market performance. - Answers Variable universal life
insurance
Term Life- expires at the end of term
Whole Life- fixed and level
Universal- adjustable, level, or increasing options
Variable- varies with investment performance; face value is guaranteed
VUL- adjustable, level, or increasing options - Answers Death benefit of each type of life
insurance
Term Life- fixed schedule, increases at the end of each term
Whole Life- Fixed schedule, level amount
Universal- Flexible schedule, flexible amount
Variable- fixed schedule, level amount
VUL- flexible schedule, flexible amount - Answers Premiums for each type of life insurance
Term Life- none
Whole Life- Fixed and guaranteed
Universal- Current interest with guaranteed minimum rate
Variable- varies with investment performance. no guaranteed minimum and at risk for loss
VUL- varies with investment performance; no guaranteed minimum and at risk for loss -
Answers Cash values for each type of life insurance
can be a first to die or last to die policy
first to die- upon death of the first person, the face value is paid and the insurance is terminated,
leaving the second person uncovered. this is good for business partners or spouses
last to die- when the last person dies they receive the face value. good for estate planning. -
Answers Joint Life Insurance
