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Free Types of Life Insurance Policies Practice Questions

Indiana Life exam — 76 practice questions.

Subtopics: Term insurance, Decreasing term, Whole life, Universal life, Variable life, Variable products licensing, Limited pay whole life, Endowment, Joint life, Survivorship life, 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 life insurance policy provides protection for a specified period and builds no cash value?

Term life

Term life insurance provides pure death benefit protection for a stated period and does not accumulate cash value.

2. Decreasing term life insurance is frequently used to cover which need?

A mortgage balance that declines over time

Decreasing term has a death benefit that declines over time, making it well suited to cover an amortizing debt such as a mortgage.

3. Which permanent policy features level premiums and guaranteed cash value with coverage to age 100 or maturity?

Whole life

Whole life is permanent insurance with level premiums, a guaranteed death benefit, and guaranteed cash value accumulation.

4. A distinguishing feature of universal life insurance compared with traditional whole life is what?

Flexible premiums and an adjustable death benefit

Universal life offers flexible premium payments and an adjustable death benefit, giving the owner more control than traditional whole life.

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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.