Candidates should practice for life license qualification program exam with questions on life and health insurance, group benefits, government programs, investments and taxation, and retirement planning. The exam includes technical, detailed questions requiring logic, reasoning, application of formulas and calculations, and basic facts. Multiple choice questions that posit a situation and require selection of the correct response based on information provided are valuable for studying as well.
For example, if a question involves a couple looking for an increase in life insurance at the lowest premium cost, the answer involves selecting which statement provides correct information regarding term life insurance, given the situational context. Another example of a helpful practice question is one that describes an individual's work history and disability insurance and then requires calculations to arrive at the correct answer regarding her disability payment when she returns to part-time work after a disabling injury.
Candidates should practice calculating the amount of insurance coverage required based on different variables and work through time value of money calculations, memorizing both the present and future value formulas. Candidates should focus on risks of various funds and proportional and linear withdrawals from an individual variable insurance contract. A sample investment question describes an individual's salary and his company's matching pension plan asking the test-taker to select, based on the information provided, how much, if any, the individual should invest in his registered retirement savings plan.