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.

Which type of life insurance policy will provide the most rapid growth of cash value for a 35-year old?

Whole life
Term life
20-pay Life
Universal life

The correct answer is: 20-pay Life

A 20-pay Life insurance policy offers the most rapid growth of cash value for a 35-year old because it has a fixed premium payment period of 20 years, allowing for a quicker accumulation of cash value compared to a whole life policy which has a longer premium payment period, and a term life policy which does not accrue cash value at all. Additionally, although a universal life policy may also have a fixed premium payment period, the flexibility and variable interest rates associated with its cash value may not provide as rapid growth as a 20-pay life policy.