Primerica Life Producer Practice Test

Which option is typically not a standard feature of life insurance policies?

1. Death benefit

2. Cash value accumulation

3. Guaranteed annual returns

4. Premium payment schedule

The correct answer is: Guaranteed annual returns

In life insurance policies, a guaranteed annual return is typically not a standard feature. Most life insurance products, particularly term life insurance, focus on providing a death benefit — the amount paid out to beneficiaries upon the insured's passing — rather than guaranteeing investment returns. Whole life or universal life policies may have a cash value component that grows over time, which can sometimes provide returns, but these are not guaranteed in a way that resembles investment vehicles like savings accounts or bonds. Furthermore, a premium payment schedule and the death benefit are standard features that are clearly defined in the terms of the policy. Thus, the absence of guaranteed annual returns distinguishes this option from the others, making it the correct choice in the context of standard life insurance features.