Florida Life and Health Insurance License Practice Test

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Master the Florida Life and Health Insurance License Exam with our comprehensive practice test guide. Ensure your success with expert tips, detailed study materials, and realistic practice questions designed to mimic the actual exam.

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A life insurance policy that provides a policyowner with cash value along with a level face amount is called?

Term life
Universal life
Whole life
Variable life

The correct answer is: Whole life

A) Term life insurance policies do not accumulate any cash value, as they provide only a death benefit for a specified period of time. B) Universal life insurance allows the policyowner to adjust their premium and death benefit amounts, and while there is a cash value component, it is not guaranteed like in whole life. D) Variable life insurance also has a cash value element, but the policyowner can choose how the cash value is invested, making it a riskier policy compared to whole life. In contrast, whole life insurance provides a guaranteed level premium and death benefit, as well as a guaranteed cash value component. This means that the policyowner can rely on both a set amount of coverage and an accumulation of cash value over time. Therefore, the correct answer is C.