LLQP Life Insurance · Component 2.1 · 30% of the exam
Term-to-100 (T-100) insurance typically:
- Provides permanent coverage with level premiums to age 100 and little or no cash value, cheaper than whole life
- BHas premiums that increase every year, in the same way as yearly renewable term, until the insured reaches 100
- CIs a form of group insurance that employers provide to members who remain in the plan past retirement
- DExpires at age 100 with no death benefit thereafter, paying a large cash value to the owner at that age instead of coverage
Correct answer: A) Provides permanent coverage with level premiums to age 100 and little or no cash value, cheaper than whole life
T-100 is permanent insurance stripped of most cash value: a level premium buys a level death benefit for life (premiums usually stop at 100 with coverage continuing). It suits a long-term need where non-forfeiture values are not required, as the curriculum notes.
Why the other options are wrong
- BT-100 premiums are level, not increasing.
- CT-100 is an individual permanent product.
- DT-100 does not expire at 100 with a large cash value; it typically has little.
Exam tip
T-100: level premium, level benefit, permanent, minimal or no cash value — the low-cost permanent option when non-forfeiture values are not needed.
Common mistake
Assuming T-100 works like term that simply ends at 100.
What this tests
CISRO competency component 2.1 — Analyze the available products that meet the client's needs — which is weighted at 30% of the Life Insurance module. Written against the published curriculum.
More from component 2
- A client has a need lasting about twenty years and compares a ten-year and a twenty-year term policy. The main point to explain is that:
- A client exercises the conversion privilege on his term policy. The permanent premium will be based on:
- A client notices that a small policy costs proportionately more per unit of coverage than a larger one. The explanation is that:
- A client wants to pay monthly rather than annually. The agent should explain that monthly payment:
- A client asks why dividends from her participating policy are not taxed like interest from a bank. The reason is that a dividend is:
- A universal life policyholder is choosing among the investment options inside her policy. She should understand that:
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.