Indiana Life Insurance Exam 2026 | Practice
Questions & Verified Answers | Licensing Prep
Guide
1. Describe the primary feature of a Straight Life Annuity in terms of its
benefits to the policyowner.
A Straight Life Annuity pays a lump sum upon the policyowner's
death.
A Straight Life Annuity is a type of life insurance that pays a death
benefit.
A Straight Life Annuity allows for flexible premium payments.
A Straight Life Annuity provides guaranteed income for the
lifetime of the policyowner, ensuring financial support until
death.
2. Charles understates his age when he buys a Life policy naming his wife,
Mary, as an irrevocable beneficiary. When he dies 10 years later, the
company discovers the misstatement and _____________________
refuses the claim on the basis of a material misrepresentation
pays the amount the premium would have purchased at the
correct age
pays the face amount because the policy is now incontestable
pays the face amount because Mary's rights are irrevocable
3. What is the primary function of an Immediate Life Annuity?
The systematic liquidation of the principal and interest over the
lifetime of the annuitant.
Offering cost of living increases in benefit payments.
,Accumulating retirement funds.
Providing a level death benefit.
,4. Which contract promises to pay the owner a guaranteed minimum
income for as long as the individual lives?
A whole life policy
An annuity certain
A survivor ship policy
A life annuity
5. Which of the following retirement plans offers tax-free growth and tax-
free withdrawals?
401(k) plan
SIMPLE IRA
Roth IRA
Traditional IRA
6. If Joel had not taken out the $4,000 loan, what would the total amount
paid to his beneficiary upon his death be?
$107,000
$100,000
$111,000
$96,000
7. If Jon dies with an outstanding policy loan of $10,000 on his $100,000
policy that has $15,000 of cash value, what will his beneficiary receive at
the time of claim?
$100,000
$90,000
, $115,000
$105,000
8. Describe the main reason why Term Life insurance does not provide
cash value accumulation.
Term Life insurance is designed to provide coverage for a
specific period without accumulating cash value.
Term Life insurance has a savings component.
Term Life insurance is only available to seniors.
Term Life insurance invests premiums in the stock market.
9. Amy purchased a policy with intent to commit suicide. If she commits
suicide 9 months after policy is purchased, and death is proved to be
suicide, how much will insurance company pay?
nothing, policy is void
the face value of the policy
premiums paid for the policy
the policy's cash value
10. In a Decreasing Term policy, what aspect of the policy diminishes over
time?
The cash value
The nonforfeiture values
The premium
The face amount
11. If Joe decides to use his accelerated death benefit and receives 50% of
his policy's face amount, what will happen to the remaining death
Questions & Verified Answers | Licensing Prep
Guide
1. Describe the primary feature of a Straight Life Annuity in terms of its
benefits to the policyowner.
A Straight Life Annuity pays a lump sum upon the policyowner's
death.
A Straight Life Annuity is a type of life insurance that pays a death
benefit.
A Straight Life Annuity allows for flexible premium payments.
A Straight Life Annuity provides guaranteed income for the
lifetime of the policyowner, ensuring financial support until
death.
2. Charles understates his age when he buys a Life policy naming his wife,
Mary, as an irrevocable beneficiary. When he dies 10 years later, the
company discovers the misstatement and _____________________
refuses the claim on the basis of a material misrepresentation
pays the amount the premium would have purchased at the
correct age
pays the face amount because the policy is now incontestable
pays the face amount because Mary's rights are irrevocable
3. What is the primary function of an Immediate Life Annuity?
The systematic liquidation of the principal and interest over the
lifetime of the annuitant.
Offering cost of living increases in benefit payments.
,Accumulating retirement funds.
Providing a level death benefit.
,4. Which contract promises to pay the owner a guaranteed minimum
income for as long as the individual lives?
A whole life policy
An annuity certain
A survivor ship policy
A life annuity
5. Which of the following retirement plans offers tax-free growth and tax-
free withdrawals?
401(k) plan
SIMPLE IRA
Roth IRA
Traditional IRA
6. If Joel had not taken out the $4,000 loan, what would the total amount
paid to his beneficiary upon his death be?
$107,000
$100,000
$111,000
$96,000
7. If Jon dies with an outstanding policy loan of $10,000 on his $100,000
policy that has $15,000 of cash value, what will his beneficiary receive at
the time of claim?
$100,000
$90,000
, $115,000
$105,000
8. Describe the main reason why Term Life insurance does not provide
cash value accumulation.
Term Life insurance is designed to provide coverage for a
specific period without accumulating cash value.
Term Life insurance has a savings component.
Term Life insurance is only available to seniors.
Term Life insurance invests premiums in the stock market.
9. Amy purchased a policy with intent to commit suicide. If she commits
suicide 9 months after policy is purchased, and death is proved to be
suicide, how much will insurance company pay?
nothing, policy is void
the face value of the policy
premiums paid for the policy
the policy's cash value
10. In a Decreasing Term policy, what aspect of the policy diminishes over
time?
The cash value
The nonforfeiture values
The premium
The face amount
11. If Joe decides to use his accelerated death benefit and receives 50% of
his policy's face amount, what will happen to the remaining death
