Study guide
What to know before you're in the room.
The core terms you'll see on the exam and in real conversations — plus how to handle the pushback that comes with asking for sensitive information.
The core terms you'll see on the exam and in real conversations — plus how to handle the pushback that comes with asking for sensitive information.
This isn't a replacement for your pre-licensing course — just the terms that come up constantly, both on the exam and out in the field.
Coverage for a set period — 10, 20, or 30 years. No cash value, lower premiums. Good fit for temporary needs, like a mortgage or the years until kids are grown.
Permanent coverage that lasts for life as long as premiums are paid. Builds cash value over time, higher premiums than term.
Smaller whole life policies built to cover funeral and end-of-life costs. Usually simplified or guaranteed issue, popular with older clients.
How the carrier decides whether to approve an application, and at what price, based on health, age, and other risk factors.
No medical exam — just health questions. Faster approval, slightly higher premiums than fully underwritten policies.
No health questions at all. Guaranteed acceptance, but higher cost and lower coverage — usually a last resort, not a first offer.
In Florida, clients have 10 days after receiving the policy to cancel it for a full refund, no questions asked.
The first two years of a policy, during which the carrier can investigate and deny a claim if something on the application was misrepresented.
Who gets paid out when the insured passes. You can name a primary and a backup (contingent) beneficiary.
An add-on to a base policy — things like accidental death, waiver of premium, or a child term rider.
Florida requires you to have a reasonable basis for believing a policy fits the client's needs and finances before recommending it. Not optional — it's the standard you're held to.
Asking for someone's Social Security number, medical history, and bank info in the same conversation can feel like a lot — for you and for them. Here's how to handle the pushback.
It's how the carrier verifies identity, runs the required background check, and makes sure the right person gets paid when it matters. It's standard on every legitimate application — not extra paperwork.
That's fair, and worth taking seriously. It's protected information, only used for underwriting — and skipping or softening it doesn't protect them, it just adds risk that a claim gets questioned later. Being upfront now is what protects their family down the road.
It's how premium payments get set up — nothing gets charged without their authorization, and there are usually other billing options if a direct draft isn't their preference.
Encourage them to check. Every Florida agent has a license number they can look up directly with the Department of Financial Services, and the carrier itself has a real website and rating. A client asking this isn't a red flag — it's a good sign they're paying attention.
This page is a starting point, not a substitute for your pre-licensing course or your state exam prep. Terms and requirements can shift — always confirm against your course materials and Florida's current statutes.