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Pearson Vue Life Practice Exam 2024/2025 Questions With Completed & Verified Solutions.
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Pearson Vue Life Practice Exam 2024/2025 Questions With Completed & Verified Solutions.
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Pearson Vue Life Practice ExamUniversal Life - ANS a whole life policy that combines term insurance and investment elements
Modified Whole Life - ANS Low premiums in the early years and jumps to a higher premium in
the later years and remains fixed thereafter. Premiums increase just once.
Graded Premium Whole Life - ANS Variation of a traditional whole life contract providing for
lower than normal premium rates during the first few policy years, with premiums increasing
gradually each year. After the preliminary period, premiums level off and remain constant.
Variable Universal Life - ANS Builds cash value that can be invested in separate accounts
(Need Securities License)
Interest Sensitive Whole Life - ANS Coverage provides flexible premiums based on a changing
interest rate. Synonymous with current assumption whole life.
(High rate=Low Prem: Low Rate=Raise Prem)
Equity Indexed Universal Life - ANS Works the same way as universal life insurance except the
interest rate is tied to a stock market index.
Ordinary Life - ANS Basic whole life with level face amount and premium
Limited Pay - ANS Coverage for life with limited premium payments
Adjustable Life - ANS Life insurance which permits changes in the face amount, premium
amount, period of protection, and the duration of the premium payment period.
Fixed - ANS Constant Interest Rate
Variable - ANS Fluctuating Interest Rate
Participating - ANS Pay dividends to policyholders,
Nonparticipating - ANS Pay dividends to shareholders (Stock Companies)
Term Life - ANS An insurance policy with a set duration limit on the coverage period. Once the
policy is expired, it is up to the policy owner to decide whether to renew the term life insurance
policy or to let the coverage end. No cash value
Decreasing Term - ANS A type of life insurance that features a level premium and a death
benefit that decreases each year over the duration of the policy.
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