Arkansas Life and Health Insurance Practice Exam

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Study for the Arkansas Life and Health Insurance Exam with our comprehensive resources. Utilize multiple-choice questions and flashcards to increase your knowledge and understanding. Get ready to pass your exam and jumpstart your career in the insurance industry!

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 of the following would have the highest first-year annual premium for a 30-year-old, all other factors being equal?

Term to age 70
Term to age 90
Whole Life
Universal Life

The correct answer is: Term to age 70

Term to age 70 would have the highest first-year annual premium for a 30-year-old because the premium amount is influenced by the age of the insured. Term to age 70 would cover the insured until they reach the age of 70, which is a shorter period compared to Term to age 90, Whole Life, and Universal Life policies. Therefore, since the coverage period is shorter, the risk of the insurance company having to pay out a death benefit during the term is higher, resulting in a higher premium cost for the insured.