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Free Types of Life Insurance Policies Practice Questions

Colorado Life exam — 76 practice questions.

Subtopics: Term insurance, Whole life, Decreasing term, Universal life, Variable life, Variable products license, Endowment, Joint life, Survivorship life, Modified endowment contract, Term basics, Level term, Renewable term, Convertible term, Limited-pay life, Single premium, Adjustable life, UL death benefit options, UL corridor, Variable universal life, Indexed universal life, Increasing term, Annual renewable term, Juvenile insurance, Jumping juvenile, Return of premium term, Modified whole life, Index whole life, Continuous premium, Group eligible groups, Group characteristics, Noncontributory plan, Contributory plan, Credit life, Survivorship cost, Interest-sensitive whole life, Conversion timing, Survivorship second-to-die life, Family income policy, Family maintenance policy, Family plan policy, Graded premium whole life, Graded death benefit policy, Guaranteed issue life, Simplified issue life, Multiple protection policy, Endowment policy, Pure endowment, Term to age 100, Conversion attained vs original age, Reentry term, Deposit term, Group term dependent coverage, Group permanent life, Franchise life insurance, Industrial life insurance, Pre-need funeral insurance, Final expense whole life, Standalone accidental death policy, Survivorship universal life, UL Option A death benefit, Target premium UL, Single-premium variable life, Minimum deposit policy, Modified coverage whole life, Combination whole life and term, Joint life vs survivorship, Convertible group term

Read the Types of Life Insurance Policies study guide

Sample questions & answers

1. Which type of life insurance provides protection for a specified period with no cash value?

Term life

Term life provides death benefit protection for a stated period and typically builds no cash value.

2. A distinguishing feature of whole life insurance is that it:

Provides lifetime protection and builds cash value

Whole life offers permanent protection with a guaranteed cash value that builds over time on a level-premium basis.

3. Decreasing term insurance is commonly used to:

Cover a debt such as a mortgage that reduces over time

Decreasing term has a death benefit that declines over the term, making it useful to cover an amortizing debt like a mortgage.

4. A key flexibility of universal life insurance is that the policyowner can generally:

Adjust the premium and death benefit within limits

Universal life is flexible-premium adjustable life, letting the owner vary premiums and death benefit within policy limits.

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Practice: Types of Life Insurance Policies

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Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.