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Iowa Life Insurance: Final Exam Questions
and Correct 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.
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Limited Payment (LP) Whole Life Policies Ans: the insured is
covered for their entire life, but premiums are pad for a limited
time.
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.
© 2025 All rights reserved
Iowa Life Insurance: Final Exam Questions
and Correct 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.
© 2025 All rights reserved
, 2 | Page
Limited Payment (LP) Whole Life Policies Ans: the insured is
covered for their entire life, but premiums are pad for a limited
time.
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.
© 2025 All rights reserved
