Tennessee Insurance Practice Exam

What type of insurance policy did Y purchase if he has $100,000 permanent protection for himself and $50,000 term coverage for his wife?

1. Term Life Policy

2. Whole Life Policy with an Other Insured Rider

3. Universal Life Policy

4. Variable Life Policy

The correct answer is: Whole Life Policy with an Other Insured Rider

In this scenario, Y has a combination of permanent life insurance for himself and term life insurance for his wife. The indication that Y has $100,000 in permanent protection refers to a type of insurance that provides coverage for the entire lifetime of the insured, which aligns with whole life policies. The mention of term coverage for Y's wife illustrates that this policy can add temporary protection for another person without affecting the permanent nature of Y's own coverage. A Whole Life Policy with an Other Insured Rider is specifically designed to provide permanent benefits for the primary insured while also allowing an additional person, in this case, Y's wife, to be covered under a term policy. This combination clearly matches the definition of a Whole Life Policy with an Other Insured Rider because it allows Y to secure lifetime coverage while also providing specific coverage for another individual through term insurance. The term aspect complements the permanent nature of the other coverage without creating any conflict in policy types.