#1
What is the primary purpose of life insurance?
To provide income during retirement
To protect against financial loss due to death
To cover medical expenses
To invest and grow wealth
#2
Which type of life insurance offers coverage for a specified period?
Whole life insurance
Term life insurance
Universal life insurance
Variable life insurance
#3
Which of the following factors is typically considered when determining life insurance premiums?
Height and weight
Favorite color
Number of social media followers
Favorite food
#4
What does the term 'death benefit' refer to in life insurance?
The amount paid to the beneficiary upon the death of the insured
The premium paid by the policyholder
The investment returns from the policy
The surrender value of the policy
#5
What is the surrender value of a life insurance policy?
The amount paid to the beneficiary upon the death of the insured
The value of the policy if surrendered before maturity
The premium paid by the policyholder
The investment returns from the policy
#6
Which of the following is not typically a factor considered in life insurance underwriting?
Occupation
Smoking status
Hobbies and activities
Hair color
#7
What is a cash value component typically associated with?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#8
Which of the following statements about term life insurance is true?
It provides coverage for a specific period and does not accumulate cash value
It offers lifelong coverage and builds cash value over time
It allows policyholders to invest premiums in various funds
It offers flexibility in adjusting death benefits
#9
Which type of life insurance allows policyholders to adjust their premium payments and death benefits?
Whole life insurance
Term life insurance
Universal life insurance
Variable life insurance
#10
What is a beneficiary in a life insurance policy?
The insurance company
The individual who owns the policy
The person or entity who receives the death benefit
The insurance agent
#11
What is the purpose of an accelerated death benefit rider?
To provide additional coverage for the insured's dependents
To waive premium payments in case of disability
To allow the insured to access a portion of the death benefit if diagnosed with a terminal illness
To provide cash value accumulation
#12
Which type of life insurance offers the potential for cash value growth through investment options?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#13
What is the primary advantage of whole life insurance over term life insurance?
It offers lower premiums
It provides coverage for a specific term
It accumulates cash value over time
It allows policyholders to invest in stocks and bonds
#14
Which of the following is a characteristic of variable life insurance?
Guaranteed death benefit
Fixed premium payments
Policyholder's ability to choose investment options
Cash value accumulation
#15
What does the term 'underwriting' refer to in the context of life insurance?
The process of determining the insurability of an applicant
The process of selecting beneficiaries
The process of paying out claims
The process of marketing insurance policies
#16
What is the primary purpose of a life insurance settlement option?
To increase the death benefit
To provide flexibility in premium payments
To allow the policyholder to change beneficiaries
To distribute the death benefit over time
#17
Which of the following is a characteristic of universal life insurance?
Offers fixed premium payments
Does not accumulate cash value
Allows flexibility in premium payments and death benefits
Guarantees a minimum rate of return