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  4. Types of Life Insurance Policies

Free Types of Life Insurance Policies Practice Questions

North Carolina Life exam — 75 practice questions.

Subtopics: Term insurance, Whole life, Decreasing term, Universal life, Variable life, Endowment, Limited pay, Joint life, Survivorship, 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, Survivorship 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 and generally builds no cash value?

Term life insurance

Term life insurance provides death benefit protection for a stated period and typically has no cash value, making it the lowest-cost form of coverage initially.

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

Provides lifetime coverage and builds guaranteed cash value

Whole life provides permanent protection with level premiums and a guaranteed cash value that grows over time, with coverage intended to last the insured's lifetime.

3. Decreasing term insurance is frequently used to:

Cover a debt such as a mortgage that declines over time

In decreasing term, the death benefit declines over the policy period, which makes it well suited to covering an amortizing obligation like a mortgage.

4. A key flexibility feature of universal life insurance is that the policyowner may:

Adjust the premium and death benefit within limits

Universal life offers flexible premiums and an adjustable death benefit, with policy charges and interest credited to a cash value account.

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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.