Types of Life Insurance Policies Practice Questions

Section I of the general-knowledge outline · Texas General Lines Life, Accident and Health: 15 scored questions

Start the free types of life policies and annuities drill

Ten questions on types of life policies and annuities, untimed, with a worked answer after each one.

Or take the full Life and Health mock exam
Free sample · Question 1 of 3Types of life policies and annuities

Henrik's variable whole life subaccounts lost value during a market decline. Which part of his policy is still guaranteed?

Types of life policies and annuities on the exam

Outline section I is 15 of the 100 general-knowledge questions: how each kind of life policy and annuity works, who it fits, and what the owner can and cannot change.

Outline
Section I: Whole, universal, variable and indexed life, term life, annuities, and joint and survivorship plans
Share of the exam
Life and Health general knowledge: 15 of 100 scored questionsTexas General Lines Life, Accident and Health: 15 of 130 scored questionsTexas Life Agent: 15 of 80 scored questions
Our drill
10 questions from 54 on this section, untimed, a worked answer after each; one free attempt, unlimited with a pass
Line drawing of an hourglass, a policy folder and a young tree growing in a pot

What to know

  • Whole life charges a level premium for the insured’s whole life and builds a guaranteed cash value. Limited-pay whole life (such as 20-pay or paid-up at 65) squeezes the premiums into fewer years; single-premium whole life pays for the policy in one payment.
  • Universal life separates the death benefit, the expenses and a cash account that earns a declared rate with a guaranteed minimum. Premiums and the face amount are flexible. Option A keeps a level death benefit; Option B pays the face amount plus the cash value.
  • Variable whole life and variable universal life put the cash value in separate-account subaccounts, so the policyowner carries the investment risk. Selling them takes a securities registration as well as a life license.
  • Term life covers a set period with no cash value: level, decreasing (often matched to a mortgage), annually renewable and return-of-premium term. Renewable term can be renewed without evidence of insurability at the attained-age rate; convertible term can be exchanged for permanent coverage without evidence of insurability.
  • An annuity accumulates money (the accumulation period) and then pays it out (the annuity period). An immediate annuity starts paying within a year of purchase; a deferred annuity starts later. Payout options include life only, life with period certain, refund and joint and survivor.
  • Joint life (first-to-die) pays when the first of two insureds dies; survivorship life (second-to-die) pays at the second death and is often used to fund estate taxes.

Test yourself on types of life policies and annuities

Start the free types of life policies and annuities drill

Ten questions on types of life policies and annuities, untimed, with a worked answer after each one.

Or take the full Life and Health mock exam

Common questions

How many types of life policies and annuities questions are on the exam?

Section I is 15 of the 100 scored general-knowledge questions on the Texas General Lines exam and 15 of the 50 on the Texas Life Agent exam. Our full mock draws the same number.

Are these real exam questions?

No. No state or testing vendor does not release exam questions. These are original practice questions written to the published content outline, with a worked explanation and the source behind every answer.

More life and health sections

Outline and facts checked November 2026: Texas Insurance Content Outlines (effective September 1, 2026) · NAIC Uniform Individual Accident and Sickness Policy Provision Law · Texas Insurance Licensing Candidate Handbook.

Original independent practice questions written to the published Pearson VUE content outline. Not affiliated with or endorsed by Pearson VUE, the Texas Department of Insurance or any state insurance department.