#1
Which of the following is a key feature of a term life insurance policy?
Cash value accumulation
Coverage for a specific period
Flexible premium payments
Investment component
#2
What does the 'death benefit' refer to in a life insurance policy?
The amount the policyholder pays annually
The money the beneficiary receives upon the death of the insured
The cash value of the policy
The premium paid by the insurance company
#3
In a life insurance policy, what does 'cash value' refer to?
The amount the policyholder can borrow against the policy
The amount the beneficiary receives upon the insured's death
The premium payment made by the insured
The investment gains earned by the insurance company
#4
Which type of life insurance policy allows the policyholder to adjust the death benefit and premium payments?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#5
Which type of life insurance policy provides coverage for a specific period and typically does not accumulate cash value?
Whole life insurance
Variable life insurance
Term life insurance
Universal life insurance
#6
Which type of life insurance policy typically offers both a death benefit and a cash value component?
Whole life insurance
Term life insurance
Variable life insurance
Universal life insurance
#7
What does 'underwriting' involve in the context of life insurance?
Assessing the risk and setting premiums
Calculating the cash value of a policy
Determining the beneficiary
Issuing the insurance policy
#8
What is the primary purpose of the 'grace period' in a life insurance policy?
To extend the coverage period
To allow the insured to skip premium payments
To provide a window for premium payment after the due date without policy lapse
To decrease the death benefit
#9
Which of the following factors typically influences the cost of life insurance premiums?
Policyholder's age and health
Insurance company's profitability
Interest rates set by the government
Geographical location of the insured
#10
What is the primary purpose of the 'suicide clause' in a life insurance policy?
To provide coverage for death due to suicide
To exclude coverage for death due to suicide
To reduce the premium for individuals with suicidal tendencies
To extend coverage for the insured's family in case of suicide
#11
In a life insurance policy, what is the 'cash surrender value'?
The amount of cash the beneficiary receives upon the death of the insured
The amount the policyholder receives if they surrender the policy before maturity
The premium payment made by the insured
The amount the insurance company invests from premiums
#12
What is the main difference between a 'rider' and a 'beneficiary' in a life insurance policy?
A rider is an additional coverage while a beneficiary is the recipient of the death benefit
A rider is the policyholder's agent while a beneficiary is the insurer
A rider is a clause that cancels the policy while a beneficiary is a clause that modifies coverage
A rider is the insured person while a beneficiary is the person who pays the premiums
#13
What does the 'incontestability clause' in a life insurance policy typically provide?
Guaranteed returns on investment
Immunity against policy termination
Protection against fraud after a certain period
Protection against changes in premium rates
#14
What is the main advantage of a 'return of premium' rider in a life insurance policy?
It increases the death benefit
It provides coverage for pre-existing conditions
It refunds the premiums paid if the insured outlives the policy term
It guarantees a fixed interest rate on the cash value
#15
In a life insurance policy, what does the 'exclusion rider' typically specify?
The circumstances under which the policy can be canceled
The specific perils or conditions not covered by the policy
The maximum amount the insurer will pay in benefits
The time period during which the insured cannot make a claim