Fundamentals of Life Insurance Quiz

It provides income replacement for a limited period if you are unable to work due to disability, not a form of life insurance.

It's the regular payment made to keep the policy active.

It's to provide financial security to the beneficiaries in the event of the insured's death.

Beneficiaries receive a lump-sum payment upon the insured's death.

It's a period during which the policy remains active even if premiums are not paid, allowing reinstatement without new underwriting.

Gender can impact premiums due to actuarial risk assessments.

It's the accumulated value of the policy over time, acting as a savings component.

It's the sum paid to the designated beneficiary upon the death of the insured.

Whole life policies accumulate cash value over time, while term policies do not.

It grants the policyholder a period to review the policy and cancel if not satisfied without financial penalty.

It allows the policyholder to access a portion of the death benefit early if diagnosed with a qualifying critical illness.

It prohibits the insurer from challenging the policy's validity after a specified time period, typically two years.

It's the evaluation of the applicant's risk profile to determine policy eligibility and premiums.

They're designated to receive the death benefit payout upon the insured's death.

It's a policy where all premiums are paid, and coverage remains in force without further payments.

It permits the policyholder to access a portion of the death benefit if diagnosed with a qualifying terminal illness or long-term care need.

It exempts the policyholder from premium payments if they become disabled, ensuring coverage remains in force.