Florida Life, Health and Variable Annuity

Exam Questions with answers. Rated A.

2022/2023

Categories of Life Insurance - ✔✔Ordinary, Industrial and Group

Ordinary Life - ✔✔is individual life insurance that includes many types of TERM and PERMANENT

insurance and is usually paid with monthly premiums. Is the principal type of life insurance purchased in

the United States.

Industrial Insurance - ✔✔small issue amounts with premiums collected weekly or monthly by agents at

policyowner's home. Also known as BURIAL INSURANCE

Group Insurance - ✔✔written for employer-employee groups to provide coverage for a number of

individuals under one contract. Underwriting is based on the group and not the individual. Premiums are

lower but when you leave it gets expensive.

Term Life Insurance - ✔✔simplest type of life insurance, provides insurance protection for a specified

period and pays a benefit only if the insured dies during the period. Like renting your insurance but it's

more affordable but as you get older it goes up.(No Equity)

Forms of Term Life Insurance - ✔✔level, decreasing and increasing

Level Term Insurance - ✔✔provides a level amount of protection for a specified period, after which the

policy expires. Level premium and level death benefit

Decreasing Term Insurance - ✔✔characterized by benefit amounts that decrease gradually over the

term of protection but the premium stays the same throughout. Used to cover LOANS or MORTGAGES.

Increasing Term Insurance - ✔✔insurance that provides a death benefit that increases at periodic

intervals over the policy's term. Usually used to cover a BUY SELL AGREEMENT and is usually purchased

as a COST OF LIVING RIDER.