TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE ACTUAL EXAM |
COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS| 2026 LATEST UPDATED| A+
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Terms in this set (342)
1) Sandra Timms, age 27, is advised D—A $50,000 Decreasing Term policy for 20
by her producer to purchase Life years
insurance to cover a 20-year-
amortized $50,000 business- Explanation: The key here is "minimum premium".
improvement loan. Which of the Term is the most inexpensive type of coverage.
following plans would adequately Since Sandra's $50,000 loan will be paid off over
protect Ms. Timms at the minimum 20 years and the loan balance will decrease each
premium outlay? year, Decreasing Term makes sense. Decreasing
Term is not renewable.
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20
years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy
for 20 years
,2) A 45-year old customer who is B- Equity Indexed Annuity
seeking to supplement his
retirement income at age 65 would
not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
3) John Livingston owns a 30-Pay C- 100
Life policy that he purchased at the
age of 30. The cash value will equal Explanation: Limited Pay Life insurance policies
the face amount of the policy when such as Life Paid Up at 65 or 20-Pay Life are
he reaches the age of: simply variations of Whole Life policies. The cash
A- 60 value will equal face amount of the policy (at
B- 70 least) at the maturity of the policy, which is
C- 100 always age 100 on Whole Life policies. These
D- 30 limited-pay policies are designed so that the
insured may pay his or her premiums faster and
be "paid up" at a certain age. However, just
because the premiums are paid up doesn't mean
the policy has matured.
, 4) Which of the following is an C- Life Paid-Up at Age 65
example of a Limited-Pay Life
policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies B- Whole Life
provides the greatest amount of
protection for an insured's premium If we had not mentioned cash accumulation, the
dollar as well as some cash answer would have been Term. However, Term
accumulation? has no cash value, so the answer is Whole Life,
A- Annuity which is the most inexpensive type of permanent
B- Whole Life insurance and is required to have a cash value
C- Term after the third policy year. Although Limited Pay
D- Limited-Pay Life Life is a type of Whole Life, it is incorrect since it
is usually quite expensive due to the shortened
pay-in period. Annuities have no cash value
except the money the annuitant paid in. Since
there is no death benefit, no protection is
offered.
6) Which of the following individual C- Conversion from a Term policy to a Whole Life
policy conversions is usually policy
permitted without any evidence of
insurability?
HEALTH INSURANCE ACTUAL EXAM |
COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS| 2026 LATEST UPDATED| A+
Save
Terms in this set (342)
1) Sandra Timms, age 27, is advised D—A $50,000 Decreasing Term policy for 20
by her producer to purchase Life years
insurance to cover a 20-year-
amortized $50,000 business- Explanation: The key here is "minimum premium".
improvement loan. Which of the Term is the most inexpensive type of coverage.
following plans would adequately Since Sandra's $50,000 loan will be paid off over
protect Ms. Timms at the minimum 20 years and the loan balance will decrease each
premium outlay? year, Decreasing Term makes sense. Decreasing
Term is not renewable.
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20
years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy
for 20 years
,2) A 45-year old customer who is B- Equity Indexed Annuity
seeking to supplement his
retirement income at age 65 would
not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
3) John Livingston owns a 30-Pay C- 100
Life policy that he purchased at the
age of 30. The cash value will equal Explanation: Limited Pay Life insurance policies
the face amount of the policy when such as Life Paid Up at 65 or 20-Pay Life are
he reaches the age of: simply variations of Whole Life policies. The cash
A- 60 value will equal face amount of the policy (at
B- 70 least) at the maturity of the policy, which is
C- 100 always age 100 on Whole Life policies. These
D- 30 limited-pay policies are designed so that the
insured may pay his or her premiums faster and
be "paid up" at a certain age. However, just
because the premiums are paid up doesn't mean
the policy has matured.
, 4) Which of the following is an C- Life Paid-Up at Age 65
example of a Limited-Pay Life
policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies B- Whole Life
provides the greatest amount of
protection for an insured's premium If we had not mentioned cash accumulation, the
dollar as well as some cash answer would have been Term. However, Term
accumulation? has no cash value, so the answer is Whole Life,
A- Annuity which is the most inexpensive type of permanent
B- Whole Life insurance and is required to have a cash value
C- Term after the third policy year. Although Limited Pay
D- Limited-Pay Life Life is a type of Whole Life, it is incorrect since it
is usually quite expensive due to the shortened
pay-in period. Annuities have no cash value
except the money the annuitant paid in. Since
there is no death benefit, no protection is
offered.
6) Which of the following individual C- Conversion from a Term policy to a Whole Life
policy conversions is usually policy
permitted without any evidence of
insurability?
