Oklahoma Life Producer Practice Exam

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Study for the Oklahoma Life Producer Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Practice this question and more.

What type of life insurance has one increase in premium after which it remains to age 100?

Modified life
Endowment
Single premium
Universal life

The correct answer is: Modified life

Modified life insurance is designed to have lower premiums in the initial years, followed by an increase in premiums after a specified period. Typically, after this increase, the premium remains level for the remainder of the policyholder’s life, often extending coverage up to age 100. This structure appeals to those who may seek affordability when they are younger but plan for stability in their financial obligations as they age. The unique design of modified life insurance allows for adjustments that reflect the changing financial capabilities of the policyholder while ensuring that they receive lifelong coverage. This type of policy essentially balances initial affordability with future financial planning, making it an attractive option for many individuals.