Primerica Life Insurance Exam: 2023/ 2024 New Update (Questions and 100% Verified Answers)

Primerica Life Insurance Exam: 2023/ 2024 New Update (Questions and 100% Verified Answers) 1. A married couple owns a permanent policy which covers both of their lives and pays the benefit only upon the death of the first insured. Which policy is that? A. Survivorship Life Policy B. Second-to-Die C. Family income policy D. Joint life policy Answer: D. Joint life policy 2. An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation ay have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She will likely purchase a(n) A. Variable Annuity B. Flexible Annuity C. Immediate Annuity D. Equity Indexed Annuity Answer: D. Equity Indexed Annuity 3. When would a 20-pay whole life policy endow? A. At the insured's age 65 B. After 20 payments C. In 20 years D. When the insured reaches age 100 Answer: D. When the insured reaches age 100 4. In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT A. The premium B. The amount of insurance C. The type of investment D. the length of coverage Answer: C. The type of investment 5. Which statement is NOT true regarding straight life policy? A. Its premium steadily decreases over time, in response to its growing cash value B. The face value of the policy is paid to the insured at age 100 C. It usually develops cash value by the end of the third policy year D. It has the lowest annual premium of the three types of Whole Life policies Answer: A. Its premium steadily decreases over time, in response to its growing cash value 6. Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period time, the policy premium will be A. Discounted B. Adjusted to the insured's age at the time of renewal C. Determined by the health of the insured D. Based on the issue age of the insured Answer: B. Adjusted to the insured's age at the time of renewal 7. What is the purpose of establishing the target premium for a universal life policy? A. To accumulate cash value faster B. To pay up the policy faster C. To cover all policy expenses D. To keep the policy in force Answer: D. To keep the policy in force 8. The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as A. The policy owner cannot skip premiums without the policy lapsing B. The next month's premium is sufficient to cover both the current premium amount and the skipped amount C. The policy contains sufficient cash value to cover the cost of insurance D. The previous payments were high enough to create an excess premium Answer: C. The policy contains sufficient cash value to cover the cost of insurance 9. Your client wants both protection and savings from life insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client A. Interest-sensitive whole life B. Life annuity with period certain C. Increasing term D. Limited pay whole life Answer: D. Limited pay whole life 10. If an agent wishes to sell variable life policies, what license must he agen