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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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.