#1
Which of the following is NOT a type of life insurance?
Term life insurance
Whole life insurance
Variable life insurance
Short-term disability insurance
#2
What does 'premium' refer to in life insurance?
The amount paid by the policyholder to the insurer
The interest earned on the policy
The sum assured by the insurer
The duration of the policy
#3
What is the main purpose of a life insurance policy?
To provide financial protection to the insured's beneficiaries
To generate regular income for the insured
To offer investment opportunities
To cover medical expenses of the insured
#4
What happens if the insured dies during the term of a term life insurance policy?
The beneficiaries receive a death benefit
The policy is extended for another term
The policy is converted into whole life insurance
The policy expires with no payout
#5
What is the 'grace period' in a life insurance policy?
The period during which the insured can reinstate a lapsed policy without undergoing medical underwriting
The period during which the insured can surrender the policy for a cash value
The period during which the insured can change the beneficiary
The period during which the insured can switch to a different type of policy
#6
Which of the following factors typically affects the premium of a life insurance policy?
Gender
Education level
Employment history
All of the above
#7
Which statement best describes 'cash value' in a life insurance policy?
The amount of money paid upon the death of the insured
The savings component of certain types of life insurance policies
The premium paid by the insurer
The commission earned by the insurance agent
#8
What does the 'death benefit' in a life insurance policy refer to?
The amount the policyholder receives upon maturity of the policy
The amount paid by the insurer to the beneficiary upon the death of the insured
The annual interest earned on the policy
The surrender value of the policy
#9
What is the primary difference between whole life and term life insurance?
Whole life insurance has a fixed term, while term life insurance covers the insured's entire life
Whole life insurance has cash value, while term life insurance does not
Whole life insurance offers higher death benefits, while term life insurance offers lower premiums
Whole life insurance is renewable, while term life insurance is not
#10
What is the purpose of the 'free look period' in life insurance?
To allow the insured to cancel the policy within a certain period without penalty
To offer free coverage to the insured for a specific period
To provide additional benefits to the insured at no extra cost
To allow the insured to change beneficiaries at any time
#11
What is the purpose of an 'accelerated death benefit' in life insurance?
To provide additional coverage in case of critical illness
To increase the death benefit upon the insured's death
To allow the insured to borrow against the policy's cash value
To provide guaranteed returns on the policy's investment component
#12
What is the 'incontestability clause' in a life insurance policy?
A provision that allows the insurer to contest the validity of the policy within a certain period
A provision that prevents the insurer from contesting the validity of the policy after a certain period
A provision that allows the insured to contest the premium amount
A provision that allows the insured to contest the beneficiary designation
#13
In life insurance, what does the term 'underwriting' mean?
The process of determining the premium for a policy
The process of assessing risk and deciding whether to issue a policy
The process of investing the premiums
The process of selling insurance policies
#14
What is the role of a beneficiary in a life insurance policy?
To pay premiums on behalf of the insured
To receive the death benefit upon the insured's death
To evaluate the policy's performance
To sell the policy to a third party
#15
What does the term 'paid-up policy' mean in life insurance?
A policy in which the premium has been fully paid
A policy that has reached its maturity date
A policy that has been surrendered for its cash value
A policy in which no further premiums are required, and coverage continues
#16
What is the purpose of a 'living benefit rider' in life insurance?
To provide financial protection to beneficiaries
To allow the policyholder to access the death benefit while still alive in certain situations
To increase the coverage amount of the policy
To provide coverage for funeral expenses
#17
What does 'waiver of premium' mean in life insurance?
The policyholder can waive the death benefit
The insurer waives the premium payment if the insured becomes disabled
The policyholder waives the right to cancel the policy
The insurer waives the death benefit if the insured dies due to specific causes