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Primerica Life Insurance Exam|
Comprehensive Q&A For Certification
Success 2026
which is generally true regarding insureds who have been classified as preferred
risks?
a. they can borrow higher amounts off of their policies
b. they can decide when to pay their monthly premiums
c. they keep a higher percentage of any interest earned on their policies
d. their premiums are lower - correct-answer - D. their premiums are lower
the preferred risk classification indicates that an insured is in excellent physical
condition and employs healthy lifestyles and habits. These individuals qualify to
lower premiums than those in other categories
all of the following are requirements for life insurance illustrations EXCEPT?
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a. they may only be used as approved
b. they must identify non guaranteed values
c. they must differentiate between guaranteed and projected amounts
d. they must be part of the contract - correct-answer - D. they must be part of the
contract
an illustration may not be altered by an agent and must clearly state that it is not
part of the contract. It is legal to list non guaranteed values in the contract, but
they must be specifically labeled as projected, not guaranteed values
Partners in a business enter into a buy-sell agreement to purchase life insurance,
which states that should one of them die prematurely, the other would be
financially able to buy the interest of the deceased partner. What type of
insurance policy may be used to fund this agreement?
a. term insurance only
b. permanent insurance only
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c. universal life insurance only
d. any form of life insurance - correct-answer - D.any form of life insurance
any form of life insurance may be used to fund a buy-sell agreement
an insurance policy that only requires a payment of premium at its inception,
provides insurance protection for the life of the insured and matures at the
insured's age 100 is called?
a. Modified Endowment Contract (MEG)
b. level term life
c. graded premium whole life
d. single premium whole life - correct-answer - D. single premium whole life
single premium whole life requires the entire premium to be paid in one lump
sum at the policy's inception
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Twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting
the business. What type of insurance would be the most affordable and still
provide a death benefit should one of them die?
a. ordinary life
b. joint life
c. decreasing term
d. whole life - correct-answer - B. joint life
a joint life policy covering 2 lives would be the least expensive because the
premiums are based on an average age, and it would pay a death benefit only at
the first death
an individual has just borrowed $10,000 from his bank on a 5-year installment
loan requiring monthly payments. What type of the life insurance policy would be
best suited to this situation?
Primerica Life Insurance Exam|
Comprehensive Q&A For Certification
Success 2026
which is generally true regarding insureds who have been classified as preferred
risks?
a. they can borrow higher amounts off of their policies
b. they can decide when to pay their monthly premiums
c. they keep a higher percentage of any interest earned on their policies
d. their premiums are lower - correct-answer - D. their premiums are lower
the preferred risk classification indicates that an insured is in excellent physical
condition and employs healthy lifestyles and habits. These individuals qualify to
lower premiums than those in other categories
all of the following are requirements for life insurance illustrations EXCEPT?
,2|Page
a. they may only be used as approved
b. they must identify non guaranteed values
c. they must differentiate between guaranteed and projected amounts
d. they must be part of the contract - correct-answer - D. they must be part of the
contract
an illustration may not be altered by an agent and must clearly state that it is not
part of the contract. It is legal to list non guaranteed values in the contract, but
they must be specifically labeled as projected, not guaranteed values
Partners in a business enter into a buy-sell agreement to purchase life insurance,
which states that should one of them die prematurely, the other would be
financially able to buy the interest of the deceased partner. What type of
insurance policy may be used to fund this agreement?
a. term insurance only
b. permanent insurance only
,3|Page
c. universal life insurance only
d. any form of life insurance - correct-answer - D.any form of life insurance
any form of life insurance may be used to fund a buy-sell agreement
an insurance policy that only requires a payment of premium at its inception,
provides insurance protection for the life of the insured and matures at the
insured's age 100 is called?
a. Modified Endowment Contract (MEG)
b. level term life
c. graded premium whole life
d. single premium whole life - correct-answer - D. single premium whole life
single premium whole life requires the entire premium to be paid in one lump
sum at the policy's inception
, 4|Page
Twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting
the business. What type of insurance would be the most affordable and still
provide a death benefit should one of them die?
a. ordinary life
b. joint life
c. decreasing term
d. whole life - correct-answer - B. joint life
a joint life policy covering 2 lives would be the least expensive because the
premiums are based on an average age, and it would pay a death benefit only at
the first death
an individual has just borrowed $10,000 from his bank on a 5-year installment
loan requiring monthly payments. What type of the life insurance policy would be
best suited to this situation?
