10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The IL-LIFE exam has 91 questions and runs 2 hours 5 minutes.
These 10 free IL-LIFE questions are organized by exam domain, so you can see how each part of the Illinois Life Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A 42-year-old parent wants permanent life insurance with guaranteed cash value, but wants scheduled premiums to end after 20 years while coverage continues for life. Which policy best matches the objective?
Correct answer: B - Twenty-pay limited-payment whole life
An indexed universal life segment uses an 80% participation rate, an 8% cap, a 0% floor, and no spread. The measured index gain is 12%. Monthly policy charges are deducted separately. What is the credited rate before charges, and what risk remains?
Correct answer: D - 8%; policy value can still fall when charges exceed credited interest
At annuitization, a retiree wants the highest available monthly income for one life and accepts that no remaining payments will be made after death. Which payout option fits?
Correct answer: A - Life only
Two spouses have adequate resources while either remains alive. Their insurance need is estate liquidity only after both have died. Which contract is designed for that timing?
Correct answer: C - Survivorship life insurance
A tax-qualified long-term-care rider follows the federal chronic-illness standard. The insured needs substantial assistance with bathing and transferring, can perform the other four activities of daily living, and is expected to remain impaired for eight months. How should the benefit trigger be evaluated?
Correct answer: C - Met, because two of six ADLs are impaired for more than 90 days
A life policy names the insured's three adult children as equal primary beneficiaries per stirpes. One child dies first, leaving two children; the other two named children survive the insured. How are the proceeds divided?
Correct answer: A - Each surviving child receives one-third, and the two grandchildren split one-third
An owner stops paying premiums on a whole life policy but wants to preserve approximately the original net death benefit for the longest period the existing cash value will purchase. The owner accepts that coverage will eventually terminate. Which option should be elected?
Correct answer: D - Extended term insurance
A $500,000 policy is collaterally assigned to a bank. At the insured's death, the verified loan balance is $125,000 and there is no other policy debt. How should the insurer ordinarily distribute the proceeds?
Correct answer: B - $125,000 to the bank and $375,000 to the beneficiary
An applicant pays the full initial premium and receives an insurability-type conditional receipt stating that coverage will relate to the application date if the applicant was insurable as applied. The applicant dies before delivery, and underwriting later confirms standard-class eligibility on the application date. What is the strongest conclusion?
Correct answer: B - Coverage can relate back under the receipt's stated conditions
Which transaction most clearly distinguishes stranger-originated life insurance from a legitimate later life settlement?
Correct answer: D - An investor arranges the policy at inception, finances premiums, and prearranges the transfer
The IL-LIFE exam also covers these domains. Drill them in the full free practice test:
The full bank has 1,020 more IL-LIFE questions with explanations.
Continue in the free practice test →
View plans