Life Insurance Cheat Sheet.
The Life Insurance numbers, rules and traps that decide questions, on one page. Review them here, then download the free PDF for offline study.
Download the PDFFull write-up
the complete guide, in proseLife insurance concept sheet
Add the exam length, passing score, policy deadlines and licensing rules from your own state's current candidate materials. There is no nationwide passing score or topic-weight table on this sheet.
Compare the concepts before memorizing terms
| Concept | Key distinction | Question to ask |
|---|---|---|
| Term insurance | Protection for a defined period; generally no cash value. | Does the scenario describe death during the covered term? |
| Cash-value insurance | Includes whole, universal and variable life. | Is the question about a living policy value or the death benefit? |
| Policy loan | Unpaid principal and interest reduce the death benefit. | What outstanding balance must be considered? |
| Guaranteed insurability rider | May permit specified future coverage increases without another medical exam. | Does the option meet the rider's timing and coverage conditions? |
Worked example: cash value is not automatically added
Suppose a question gives a death benefit of $100,000 and an unpaid policy loan of $4,000 plus $200 interest. It says the contract pays only the stated death benefit, reduced by outstanding loans. The calculation is $100,000 − $4,000 − $200 = $95,800. Do not add a separate cash-value figure unless the policy terms in the question call for that payment. These are invented practice numbers, not a legal limit.
Self-check: identify the missing condition
A learner says, “Guaranteed insurability means I can increase my coverage whenever I want.” What is missing? The rider's specified times and conditions. No new medical exam does not mean an unrestricted right to increase coverage at any time.
Add a state-specific checklist
- Exact license and line of authority on your application.
- Current candidate handbook or official exam outline.
- Passing rule, delivered question count and appointment duration.
- Required education, fees and applicable policy deadlines.
Write the source and revision date beside each number you add. Practice life insurance questions next, and check the study guide for anything unclear.
Concept source: NAIC's life insurance consumer guide. This sheet does not cover a combined life-and-health exam or supply state-specific legal rules.
Frequently asked questions
Which passing score should I memorize?
Use the score in your state’s current candidate materials for your exact license. This general concept sheet does not give a nationwide passing score.
Does the beneficiary always get the cash value plus the death benefit?
No. Do not add them automatically. NAIC notes that some whole life policies pay both; the policy terms matter. Unpaid policy loans and interest reduce the death benefit.
Does guaranteed insurability allow an increase at any time?
The rider can allow increases at specified future times without another medical exam. Check its conditions rather than assuming an unrestricted increase.
Is this also a health insurance or annuity tax cheat sheet?
No. This sheet focuses on general life-insurance concepts. Use the relevant official materials for a combined exam, state law or tax treatment.
Sources
- 1.Life Insurance Consumer Guide — NAIC (accessed Sep 8, 2026)
Official sources
The official documents our facts about this exam are taken from.
- Examination time and question countsCalifornia Department of Insuranceinsurance.ca.gov
- Life Insurance Consumer GuideNAICcontent.naic.org
- Individual Resident License RequirementsCalifornia Department of Insuranceinsurance.ca.gov
- National Association of Insurance CommissionersNAICcontent.naic.org
- Resident licensing fingerprint requirementsCalifornia Department of Insuranceinsurance.ca.gov
- Licensing feesCalifornia Department of Insuranceinsurance.ca.gov
- AB 943 and ethics course FAQCalifornia Department of Insuranceinsurance.ca.gov
- Get an Agent LicenseTexas Department of Insurancetdi.texas.gov
- PSI Insurance Licensing ExaminationsPSI Servicespsiexams.com
- National Insurance Producer RegistryNIPRnipr.com
- License examination objectivesCalifornia Department of Insuranceinsurance.ca.gov
- Exam scheduling and PSI chargesCalifornia Department of Insuranceinsurance.ca.gov
Last verified against California Department of Insurance's official sources: