Life License Qualification Program (LLQP) Practice Exam

What type of policy should someone purchase if they want permanent protection for their spouse and term coverage for themselves?

1. Joint policy

2. Joint survivor policy

3. Whole life policy with other insured rider

4. Whole life policy with a Guaranteed Insurability option

The correct answer is: Whole life policy with other insured rider

Choosing a whole life policy with an other insured rider is an excellent option for someone who desires permanent protection for their spouse while also seeking term coverage for themselves. A whole life policy provides lifelong coverage, as it remains in force for the lifetime of the insured, assuming premiums are paid. This ensures that the spouse will have permanent protection, with the death benefit available regardless of when it is needed. Additionally, an other insured rider allows this policyholder to include their spouse as an additional insured under their whole life policy. This means that if something were to happen to the spouse, there would still be a benefit paid out for that insured individual. On the other hand, term coverage is typically chosen for the individual who wants flexibility and lower premiums while they have a specific need for insurance, such as raising children or paying off debts. Therefore, while the whole life policy covers the spouse with permanent protection, the term coverage can be pursued separately for the individual, meeting their specific needs without affecting the whole life aspect. The other options do not align as well with the requirement for an insured spouse with permanent coverage coupled with the individual’s preference for term coverage. For example, a joint policy or a joint survivor policy usually provides shared coverage rather than focusing on individual needs