Tennessee Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Tennessee Insurance Exam with engaging flashcards and comprehensive multiple-choice questions. Understand hints and receive detailed explanations for each query. Ace your test with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What life insurance product requires level premiums paid over a limited time?

Whole Life
Limited Pay Life
Universal Life
Term Life

The correct answer is: Limited Pay Life

The life insurance product that requires level premiums paid over a limited time is Limited Pay Life. This type of policy allows the policyholder to pay premiums for a specific duration, such as 10, 15, or 20 years, after which the policy is paid up, meaning no further premiums are necessary and the coverage continues for the lifetime of the insured. This structure offers the benefits of lifetime protection while allowing for a shorter payment period, making it attractive for those who wish to have their premium obligations completed within a certain timeframe. Whole Life tends to have premiums that are paid for the entire duration of the policyholder's life, so it does not fit the criteria of paying premiums over a limited time. Universal Life policies typically offer flexible premium payments that can vary, which means they do not have a set limited premium payment duration. Term Life insurance is designed to provide coverage for a specified term (like 10, 20, or 30 years), but it does not require level premiums over a limited time; premiums usually might increase at certain intervals or remain level for the term duration, but it does not accumulate cash value, unlike Limited Pay Life.