Free Life Insurance Practice Test

Heads up: these are full-difficulty, exam-level questions — harder than most free Life Insurance questions online, on purpose. A low score before studying is normal. Answer all 8 to see your score and a full explanation for each.

Question 1 of 8 · Policy Provisions

An insured bought a $100,000 policy at the age-40 premium rate but was actually 45 at issue; the same premium would have bought only $80,000 at his true age. He dies 10 years later and the misstatement is discovered. The insurer pays:

Question 2 of 8 · Policy Provisions

An insured dies during the 31-day grace period. The $250,000 policy has an unpaid $300 premium and a $10,000 outstanding policy loan. The beneficiary receives:

Question 3 of 8 · Life Basics

A 20-pay whole life policy compared with a continuous-premium (straight) whole life policy of the same face amount has:

Question 4 of 8 · Federal Tax

A wealthy 60-year-old pays a single $250,000 premium for a whole life policy. Its tax status is:

Question 5 of 8 · Riders

A physician certifies an insured is terminally ill (death expected within 24 months). She accelerates 60% of her $500,000 death benefit under an accelerated death benefit rider. For federal income tax, the $300,000 is:

Question 6 of 8 · General Concepts

For a life insurance policy to be valid, insurable interest must exist:

Question 7 of 8 · Annuities

Which annuity payout option provides the LARGEST monthly income for a given premium?

Question 8 of 8 · Regulation & Ethics

A producer persuades a client to drop an existing whole life policy and buy a new one by materially misstating the old policy's features. This practice is: