PEARSON VUE LIFE INSURANCE EXAMINATION
TEST 2026 FULL QUESTIONS AND CORRECT
SOLUTIONS
◉ Limited Payment (I Types of Policies, A. Traditional whole life
products) Answer: Premium payments are for a specified time (20-
Pay Life or 30-Pay Life) or to a specified age (Life Paid up at 65). The
face amount (death benefit) remains level and cash value continues
to earn interest and mature at age 100. While the annual premium is
higher than Straight Life, it is paid for a shorter period of time and
will have a lower total premium outlay.
◉ Single Premium (I Types of Policies, A. Traditional whole life
products) Answer: The entire premium is paid in a lump sum at the
time of purchase and creates immediate cash value. The face amount
(death benefit) remains level and cash value continues to earn
interest and mature at age 100. This policy has the lowest total
premium outlay for the life of the policy.
◉ Universal Life (I Types of Policies, B. Interest/market-
sensitive/adjustable life products) Answer: - insurance protection
and a savings element (cash value) that grows on a tax-deferred
basis
TEST 2026 FULL QUESTIONS AND CORRECT
SOLUTIONS
◉ Limited Payment (I Types of Policies, A. Traditional whole life
products) Answer: Premium payments are for a specified time (20-
Pay Life or 30-Pay Life) or to a specified age (Life Paid up at 65). The
face amount (death benefit) remains level and cash value continues
to earn interest and mature at age 100. While the annual premium is
higher than Straight Life, it is paid for a shorter period of time and
will have a lower total premium outlay.
◉ Single Premium (I Types of Policies, A. Traditional whole life
products) Answer: The entire premium is paid in a lump sum at the
time of purchase and creates immediate cash value. The face amount
(death benefit) remains level and cash value continues to earn
interest and mature at age 100. This policy has the lowest total
premium outlay for the life of the policy.
◉ Universal Life (I Types of Policies, B. Interest/market-
sensitive/adjustable life products) Answer: - insurance protection
and a savings element (cash value) that grows on a tax-deferred
basis
