New Jersey Life Producer Law Practice Test

Which document must accompany life insurance sales materials?

1. The policy application

2. The Buyer's Guide

3. The insurer's summary of benefits

4. The client's financial portfolio

The correct answer is: The Buyer's Guide

The Buyer's Guide is a crucial document that must accompany life insurance sales materials because it provides potential policyholders with essential information about various types of life insurance products. This guide is designed to help consumers understand the key features, benefits, and limitations of insurance policies, facilitating informed decision-making when purchasing life insurance. It promotes transparency and ensures that consumers are aware of their options and can compare different products in a meaningful way. While the policy application and the insurer’s summary of benefits may be important documents in the insurance process, they do not serve the same purpose as the Buyer's Guide. The policy application is primarily focused on gathering the applicant's information, and the insurer's summary of benefits is tailored to an individual policy. The client’s financial portfolio, on the other hand, is personal to the client and does not generally provide the broad context needed to understand life insurance options. Therefore, the Buyer's Guide stands out as the required companion document, ensuring that sales materials are supplemented with the necessary consumer-oriented information.