LLQP Insurance Product Types 2

Question 1

Which type of permanent life insurance policy has a cash value that grows based on the performance of investment sub-accounts chosen by the policyholder?

Accepted Answer

Variable life insurance

Answer

Variable life insurance links cash value growth to investment sub-accounts, so performance depends on market results chosen by the policyholder.

Question 2

A client wants a life insurance policy that offers flexible premiums and adjustable death benefits. Which product best fits this need?

Accepted Answer

Universal life policy

Answer

Universal life insurance provides flexibility to adjust both the premium payments and the death benefit within policy limits.

Question 3

An endowment policy differs from whole life insurance primarily because it:

Accepted Answer

Pays the face amount if the insured survives to a specified date

Answer

An endowment policy matures and pays the face amount to the living insured at a specified date, unlike whole life which pays only at death.

Question 4

Which annuity type guarantees a fixed interest rate for the accumulation period and provides a predictable income stream?

Accepted Answer

Fixed annuity

Answer

A fixed annuity credits a guaranteed interest rate during accumulation and converts to a predictable, fixed income stream at payout.

Question 5

A joint and survivor annuity primarily benefits:

Accepted Answer

Two individuals who need income to continue after the first annuitant dies

Answer

A joint and survivor annuity continues income payments to the surviving annuitant after the first annuitant's death.

LLQP - Life License Qualification Program Practice Test

LLQP - Life License Qualification Program Practice Test

LLQP Insurance Product Types 2