Texas Life Agent Practice Exam

You have a client that is a real estate agent. Which of the following types of permanent protection is best for this type of client?

1. Term Life

2. Adjustable Life

3. Whole Life

4. Universal Life

The correct answer is: Adjustable Life

For a client who is a real estate agent, Adjustable Life insurance is particularly well-suited because it combines the features of both term and whole life insurance, allowing the policyholder to adapt their coverage to meet their changing needs over time. Real estate agents often experience fluctuations in income and may have varying financial responsibilities. Adjustable Life policies provide the flexibility to modify the premium payments and the death benefit amount as needed. This means that during periods of higher income, the client could choose to increase their coverage or make higher premium payments. Conversely, they could reduce their coverage during leaner times without having to switch policies. The ability to adjust these parameters makes Adjustable Life a practical choice for someone in a profession where income can be variable and unpredictable. This type of policy also typically accumulates cash value over time, which can serve as a financial resource if needed. The other options may not provide the same level of flexibility and adaptability that the Adjustable Life option offers, making it a more fitting choice for the specific circumstances of a real estate agent.