Indiana Life Insurance Exam 2025/2026
Exam Questions and Corresponding
Answers with Surety of 100% Pass Mark
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value should the
annuitant die during the accumulation period.
D. It provides for a tax-free death benefit. - 🧠ANSWER ✔✔D. It provides for a
tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of cash
value EXCEPT:
A. Interest Sensitive Whole Life
,B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - 🧠ANSWER ✔✔D. Term Life
All of the following are true statements about the taxation of life insurance benefits
except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as ordinary
income.
D. The death benefit of a life policy is received by the beneficiary federal income
tax free. - 🧠ANSWER ✔✔A. Policy loans are taxed as ordinary income
Which of the following statements is true about the Group Life conversion
privilege?
a. Death during the conversion period is covered even if the departing employee
chooses NOT to convert to an individual policy.
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STATEMENT. ALL RIGHTS RESERVED
,b. The departing employee must pay the premium if they elect to be covered during
the conversion period.
c. If a departing employee elects to convert their life insurance, the company must
offer Term insurance as a choice.
d. Under the COBRA laws a departing employee may elect to remain a member of
the Group Life plan for a limited period of time. - 🧠ANSWER ✔✔A. Death during
the conversion period is covered even if the departing employee chooses NOT to
convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - 🧠ANSWER ✔✔A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is called:
a. Variable
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STATEMENT. ALL RIGHTS RESERVED
, b. Deferred
c. Joint and Survivorship
d. Flexible premium - 🧠ANSWER ✔✔Variable
Mary is receiving an annuity payout from her Variable Straight Life Annuity.
Upon her death, which of the following will be payable to her estate?
a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary in
benefits - 🧠ANSWER ✔✔A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
Exam Questions and Corresponding
Answers with Surety of 100% Pass Mark
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value should the
annuitant die during the accumulation period.
D. It provides for a tax-free death benefit. - 🧠ANSWER ✔✔D. It provides for a
tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of cash
value EXCEPT:
A. Interest Sensitive Whole Life
,B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - 🧠ANSWER ✔✔D. Term Life
All of the following are true statements about the taxation of life insurance benefits
except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as ordinary
income.
D. The death benefit of a life policy is received by the beneficiary federal income
tax free. - 🧠ANSWER ✔✔A. Policy loans are taxed as ordinary income
Which of the following statements is true about the Group Life conversion
privilege?
a. Death during the conversion period is covered even if the departing employee
chooses NOT to convert to an individual policy.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
,b. The departing employee must pay the premium if they elect to be covered during
the conversion period.
c. If a departing employee elects to convert their life insurance, the company must
offer Term insurance as a choice.
d. Under the COBRA laws a departing employee may elect to remain a member of
the Group Life plan for a limited period of time. - 🧠ANSWER ✔✔A. Death during
the conversion period is covered even if the departing employee chooses NOT to
convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - 🧠ANSWER ✔✔A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is called:
a. Variable
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
, b. Deferred
c. Joint and Survivorship
d. Flexible premium - 🧠ANSWER ✔✔Variable
Mary is receiving an annuity payout from her Variable Straight Life Annuity.
Upon her death, which of the following will be payable to her estate?
a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary in
benefits - 🧠ANSWER ✔✔A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
