AD Banker Comprehensive Practice Exam

What amount is associated with industrial life insurance policies?

1. $25,000 or less

2. $4,500 or less

3. $2,500 or less

4. $3,500 or less

The correct answer is: $2,500 or less

Industrial life insurance policies are typically designed to provide coverage in smaller amounts, making them accessible to individuals who may not require or be able to afford larger policies. Historically, these policies were developed to cater to the working-class population and were often paid for on a weekly or monthly basis. The correct amount associated with industrial life insurance policies is $2,500 or less. This coverage level is reflective of the intended purpose of the policies, which is to provide a safety net for families and individuals without imposing a significant financial burden. Such smaller sums also make it easier for policyholders to manage premiums and ensure the policy remains in force, as these policies often cater to individuals with limited income. In contrast, the other amounts listed are higher than what is typically associated with industrial life insurance, and while each may represent coverage levels seen in other forms of life insurance, they do not align with the established standard for industrial life policies. Thus, $2,500 stands out as the traditional cap for these specific insurance products.