PSI Ohio Insurance Practice Exam

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Get ready for the PSI Ohio Insurance Test. Use flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

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Which of the following lists the three common types of permanent individual life insurance?

Term Life, Whole Life, Universal Life
Variable Life, Whole Life, Universal Life
Temporary Life, Endowment, Whole Life
Whole Life, Variable Life, Term Life

The correct answer is: Variable Life, Whole Life, Universal Life

The three common types of permanent individual life insurance are Whole Life, Universal Life, and Variable Life. Whole Life provides a death benefit along with a cash value component that grows at a guaranteed rate. Universal Life offers more flexibility in premium payments and the death benefit amount, while also allowing for cash value accumulation. Variable Life differs by allowing the policyholder to allocate cash value into various investment options, which can increase or decrease the cash value and death benefit based on investment performance. Term Life, mentioned in other options, is not a type of permanent insurance as it only provides coverage for a specific period and does not build cash value. Temporary Life and Endowment are also not common categories for permanent insurance classifications. Thus, the answer that accurately identifies the three types of permanent individual life insurance is the one that includes Whole Life, Universal Life, and Variable Life.