Utah Life Insurance Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Which of the following is NOT a benefit of life insurance?

Immediate financial protection for beneficiaries

Potential cash value accumulation

Guaranteed investment returns

Guaranteed investment returns are not a standard benefit of life insurance, which is why this option is the correct response. Life insurance primarily serves to provide financial security and protection to beneficiaries upon the death of the insured, rather than acting as a guaranteed investment vehicle.

Policies can vary significantly; while some may have components that allow for cash value accumulation (like whole life or universal life insurance), these do not guarantee specific investment returns akin to more traditional investment vehicles. The same applies to the immediate financial protection for beneficiaries and the peace of mind offered to the policyholder, both of which are inherent benefits of life insurance. However, the notion of guaranteed investment returns misrepresents the nature of life insurance, as it is not primarily designed for investment purposes. Instead, it's a risk management tool aimed at safeguarding loved ones financially in the event of loss.

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Peace of mind for the policyholder

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