#1
What is the primary purpose of life insurance?
To protect against financial loss due to death
ExplanationFinancial protection against death.
#2
Which type of life insurance offers coverage for a specified period?
Term life insurance
ExplanationCoverage for a set time period.
#3
Which of the following factors is typically considered when determining life insurance premiums?
Height and weight
ExplanationConsidered for premium calculation.
#4
What does the term 'death benefit' refer to in life insurance?
The amount paid to the beneficiary upon the death of the insured
ExplanationAmount paid to beneficiary on death.
#5
What is the surrender value of a life insurance policy?
The value of the policy if surrendered before maturity
ExplanationPolicy's worth if surrendered early.
#6
Which of the following is not typically a factor considered in life insurance underwriting?
Hair color
ExplanationNot typically considered in underwriting.
#7
What is a cash value component typically associated with?
Whole life insurance
ExplanationCommon in whole life policies.
#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
ExplanationCovers a period without cash accumulation.
#9
Which type of life insurance allows policyholders to adjust their premium payments and death benefits?
Universal life insurance
ExplanationFlexibility in premium and benefits.
#10
What is a beneficiary in a life insurance policy?
The person or entity who receives the death benefit
ExplanationRecipient of death benefit.
#11
What is the purpose of an accelerated death benefit rider?
To allow the insured to access a portion of the death benefit if diagnosed with a terminal illness
ExplanationAccess to death benefit in terminal illness.
#12
Which type of life insurance offers the potential for cash value growth through investment options?
Variable life insurance
ExplanationCash value growth through investments.
#13
What is the primary advantage of whole life insurance over term life insurance?
It accumulates cash value over time
ExplanationCash value growth over time.
#14
Which of the following is a characteristic of variable life insurance?
Policyholder's ability to choose investment options
ExplanationChoice in investment options.
#15
What does the term 'underwriting' refer to in the context of life insurance?
The process of determining the insurability of an applicant
ExplanationAssessing applicant's insurability.
#16
What is the primary purpose of a life insurance settlement option?
To distribute the death benefit over time
ExplanationDeath benefit distribution over time.
#17
Which of the following is a characteristic of universal life insurance?
Allows flexibility in premium payments and death benefits
ExplanationFlexibility in premiums and benefits.