Primerica Chapter 3: Life insurance
policies correctly answered 2023
Attained Age - correct answer Insured's age at the time the policy is issued or renewed.
Deferred - correct answer Witheld or postponed until a specific time or event in the
future.
Endow - correct answer to have cash value of a whole life policy reach the contractural
face amount.
Face Amount - correct answer The amount of benefit stated in the LIP.
Fixed Life Insurance Products - correct answer contracts that offer guaranteed
minimum or fixed benefits
Lapse - correct answer policy termination due to nonpayment of premium
Nonforfeiture values - correct answer Benefits in a life insurance policy that the
policyowner cannot lose even if the policy is surrendered or lapses.
Variable Life insurance products - correct answer Contracts in which cash values
accumulate base upon a specific portfolio of stocks no guarantee of performance.
Term Life Insurance (aka pure life insurance) - correct answer Temporary protection,
offered in groups of years. Greatest protection for the lowest cost.
There are three different types of term insurance, based on how the death benefit
changes during the policy term, what are they? - correct answer Level term, increasing
term, and decreasing term
Does the premium change in a term policy? - correct answer No, the premium is
figured at the attained age upon selling, renewing, or converting the term policy.
Level Term Insurance - correct answer Provides a level death benefit and a level
premium during the policy term. (renews based on attained age)
Annually Renewable Term - correct answer Purest form of term. Death benefit remains
level and the policy renews annually without proof of insurability. The premium also
increases annually according to attained age.
Decreasing Term Insurance - correct answer Feature a level premium and a death
benefit which decreases every year over the duration of the policy term.
