#1
Which of the following is a primary purpose of life insurance?
To provide retirement income
To protect against loss of income due to disability
To protect against financial loss due to premature death
To invest and grow wealth
#2
What is the typical duration of a term life insurance policy?
10 years
20 years
30 years
Lifetime
#3
What is a rider in a life insurance policy?
The person who sells the policy
An additional provision that modifies the coverage
The beneficiary of the policy
The insurer's underwriting decision
#4
What is the key benefit of purchasing life insurance at a young age?
Lower premiums
Higher death benefit
No medical underwriting required
Immediate coverage
#5
Which of the following is a factor that typically affects life insurance premiums?
Occupation
Number of children
Marital status
Social media activity
#6
Which of the following is NOT typically considered a type of life insurance policy?
Term life insurance
Universal life insurance
Homeowners insurance
Whole life insurance
#7
Which of the following best describes whole life insurance?
Provides coverage for a specific period of time
Builds cash value over time
Does not require regular premium payments
Offers coverage for accidental death only
#8
What is the primary purpose of a beneficiary designation in a life insurance policy?
To determine the policy's cash value
To specify who receives the death benefit
To decide the premium payment frequency
To choose the policy term length
#9
What is the purpose of the cash value component in permanent life insurance?
To provide an additional death benefit
To serve as an investment that accumulates over time
To reduce the premium payments
To pay for medical expenses
#10
Which of the following is true about the surrender value of a life insurance policy?
It is equal to the face value of the policy
It is the amount received if the policy is surrendered before maturity
It is the premium paid for the policy
It is the same as the cash value
#11
What is the primary function of the underwriting process in life insurance?
To determine the policy premium
To select the beneficiary
To decide the policy term
To assess the insured's risk and eligibility
#12
What is the purpose of a life insurance policy illustration?
To provide a summary of policy features
To calculate the death benefit
To estimate the policy's cash surrender value
To determine premium payments
#13
Which of the following is a characteristic of universal life insurance?
Offers fixed premiums for the entire policy term
Provides coverage for a set number of years
Allows flexibility in premium payments and death benefits
Requires no medical underwriting
#14
Which of the following is a characteristic of variable universal life insurance?
Guaranteed minimum death benefit
Fixed premium payments
Policyholder has control over investment options
No cash value component
#15
What does the term 'insurable interest' mean in the context of life insurance?
Interest earned on the policy's cash value
The right to change the policy beneficiary
Financial interest in the insured's life
Premium paid for the policy
#16
Which of the following is a characteristic of term life insurance?
It builds cash value over time
It provides coverage for a specific period of time
It requires no medical underwriting
It offers flexible premium payments
#17
Which of the following is true about universal life insurance?
Offers fixed premiums for the entire policy term
Requires no medical underwriting
Policyholder can adjust death benefit and premium payments
Builds cash value at a fixed interest rate
#18
What is the primary advantage of permanent life insurance compared to term life insurance?
Lower premiums
Flexible premium payments
Builds cash value over time
Shorter coverage period