Tennessee Life Producer Practice Exam

A producer MUST leave a buyer's guide with an applicant for which type of policy?

1. Whole Life Insurance

2. Term Life Insurance

3. Universal Life Insurance

4. Accidental Death Insurance

The correct answer is: Universal Life Insurance

The buyer's guide is a crucial document required to be provided to applicants for certain types of life insurance policies to ensure they are well-informed about the products they are considering. Universal Life Insurance, in particular, is a complex product that combines life insurance with an investment component, allowing policyholders flexibility in terms of premiums and death benefits. Providing a buyer's guide for Universal Life Insurance is vital because it helps potential clients understand the unique features, benefits, and risks associated with the policy. This guidance helps them make informed decisions about whether this type of policy aligns with their financial goals and insurance needs. Whole Life and Term Life Insurance also have their own complexities and benefits, but the requirement for a buyer's guide specifically applies to Universal Life Insurance due to its unique structure and the implications it has for the policyholder's finances. Accidental Death Insurance, while a type of life insurance, typically doesn't require a buyer's guide because it is relatively straightforward and doesn't carry the same complexities as Universal Life Insurance.