Life
Life Insurance Basics for the Texas Exam
Term vs permanent, beneficiaries, riders, nonforfeiture, and underwriting themes that show up on InsTX-LAH.
Know the job of each chassis: term for temporary pure protection, whole life for permanent + cash value discipline, universal for flexible premiums/death benefits, variable for separate-account risk.
Owner, insured, and beneficiary are different roles. Revocable vs irrevocable designations change who controls updates. Contingent beneficiaries matter when the primary cannot take proceeds.
Nonforfeiture options (reduced paid-up, extended term, cash surrender) appear constantly. Policy loans reduce the net death benefit if unpaid. Incontestability and suicide clauses are early-period rules.
Underwriting classifies risk; illustrations are assumption tools, not promises. Replacement needs honest comparison — never hide cash values to force a switch.