Traditional Life case studies
Traditional Life · Put your knowledge to work in context.
The Traditional Life examination is a state licensing test for candidates who want to sell life insurance products, typically as a prerequisite to applying for a resident producer license. It is aimed at new agents, career changers, and agency support staff who need a working command of how life policies are built, sold, priced, taxed, and regulated. The content is organized around nine weighted domains: fundamentals and product types, policy provisions and riders, premiums, proceeds and beneficiaries, traditional whole life and permanent coverage, term insurance, annuities, underwriting and policy issue, taxation, and regulation and ethics. Expect the exam to reward precise vocabulary and the ability to apply rules to short scenarios rather than to recall trivia. The Traditional Life case studies are 5 cases and about 1,893 words.
1The Term Conversion Dilemma
Maria, age 45, owns a 20-year level term policy with a 500,000 death benefit, purchased 12 years ago. The policy includes a convertible rider allowing conversion to any permanent policy offered by the insurer, without evidence of insurability, until the policy anniversary nearest age 65.
355 words, about 2 min2Beneficiary Designation and Divorce
David purchased a 1,000,000 whole life policy 10 years ago and named his wife, Sarah, as primary beneficiary and his estate as contingent beneficiary. David and Sarah divorced 3 years ago.
403 words, about 2 min3Annuity Payout Options and Taxation
Robert, age 70, owns a non-qualified deferred annuity with a cash value of 300,000. His basis (after-tax contributions) is 100,000.
404 words, about 2 min4Underwriting and Risk Classification
John, age 50, applies for a $1,000,000 20-year term life policy. During underwriting, the insurer discovers that John has a history of elevated liver enzymes (ALT 80 U/L, AST 70 U/L) and is overweight (BMI 32).
382 words, about 2 min5Policy Replacement and Ethics
Agent Smith is meeting with a 65-year-old client, Mrs. Jones, who owns a whole life policy with a 250,000 death benefit and 50,000 cash value.
349 words, about 2 min