#1
Which of the following is a type of life insurance that provides coverage for a specific period?
Term life insurance
ExplanationTerm life insurance provides coverage for a specific period.
#2
What feature distinguishes whole life insurance from term life insurance?
Whole life insurance has a fixed premium for life.
ExplanationWhole life insurance offers a fixed premium for the insured's lifetime.
#3
Which of the following is NOT a benefit of universal life insurance?
Guaranteed death benefit
ExplanationUniversal life insurance does not guarantee a death benefit.
#4
What is a cash value component in a life insurance policy?
The amount available for withdrawal or loan
ExplanationCash value is the amount available for withdrawal or loan in a life insurance policy.
#5
Which statement about variable life insurance is true?
The policyholder can decide how premiums are invested.
ExplanationPolicyholders have the discretion to decide how premiums are invested in variable life insurance.
#6
What distinguishes a level premium term life insurance policy from an annually renewable term policy?
The level premium term policy offers consistent premiums for the entire term.
ExplanationLevel premium term policies have consistent premiums for the full term, unlike annually renewable term policies.