Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

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.

N wants a life insurance policy with level premiums and permanent protection that is paid-up at retirement. What should N purchase?

Whole Life
Term Life
30 Pay Life
Universal Life

The correct answer is: 30 Pay Life

N should purchase a 30 Pay Life insurance policy because it offers permanent protection with level premiums that are paid-up at retirement. This means that N will have coverage for their entire life and will not have to pay premiums after 30 years have passed. The other options, Whole Life and Universal Life, also offer permanent protection but do not have the same level premium and paid-up feature at retirement. Term Life, on the other hand, does not offer permanent protection and the premiums are only level for a specified period of time (typically 10, 20, or 30 years). Therefore, term life would not be suitable for someone looking for permanent protection with level premiums that are paid-up at retirement.