#1
Which of the following is a common type of life insurance that provides coverage for a specified term?
Whole life insurance
Variable life insurance
Term life insurance
Universal life insurance
#2
What is the primary characteristic of whole life insurance?
Provides coverage for a specific term
Builds cash value over time
Allows flexibility in premium payments
Offers investment options
#3
What is the main advantage of purchasing a life insurance policy at a younger age?
Higher death benefit
Lower premiums
Shorter policy term
Guaranteed cash value
#4
Which type of life insurance policy provides a combination of life insurance coverage and an investment component?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#5
What does the term 'rider' refer to in the context of life insurance?
Person covered by the policy
Additional coverage added to the policy
Insurance agent
Policyholder's signature
#6
What is the primary benefit of having a 'paid-up' life insurance policy?
No further premium payments required
Higher death benefit
Increased cash value
Additional coverage for critical illness
#7
In a universal life insurance policy, what can the policyholder adjust over time?
Death benefit
Premium payments
Policy term
Cash value
#8
What is the primary feature of variable life insurance?
Guaranteed death benefit
Fixed premium payments
Investment component
Lifetime coverage
#9
What is the purpose of the cash value component in a life insurance policy?
Provides a lump-sum payment to beneficiaries
Serves as an investment that can be accessed by the policyholder
Determines the premium amount
Covers medical expenses
#10
Which of the following statements about term life insurance is correct?
Builds cash value over time
Provides coverage for the entire life of the insured
Has lower premiums compared to other types of life insurance
Offers flexible premium payment options
#11
What is the primary difference between term life insurance and whole life insurance?
Premium payments
Policy duration
Cash value component
Death benefit
#12
Which of the following factors is typically considered when determining life insurance premiums?
Current income level
Gender
Education level
Social media activity
#13
In which type of life insurance policy does the cash value fluctuate based on market performance?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#14
In the context of life insurance, what is underwriting?
Determining the policy premium
Evaluating the risk and determining eligibility
Cancelling a policy
Investing policyholder premiums
#15
Which life insurance policy allows the policyholder to participate in investment earnings and losses?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#16
What is the significance of the suicide clause in a life insurance policy?
Excludes coverage for self-inflicted injuries
Provides extra coverage for accidental death
Determines the payout amount
Allows policy cancellation without penalty
#17
In a life insurance policy, what is the purpose of the 'contestability period'?
Period during which the policyholder can contest the premium amount
Time when the insurance company can contest a claim due to misrepresentation
Duration of coverage provided for free
Period for adding or removing beneficiaries
#18
Which type of life insurance policy allows the policyholder to change the death benefit amount after the policy is issued?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance