#1
What does the term 'premium' refer to in life insurance?
The amount paid by the policyholder for coverage
ExplanationCost of insurance coverage.
#2
What does the term 'rider' mean in life insurance?
An additional provision or option added to a life insurance policy
ExplanationAdded coverage options.
#3
What is the 'contestability period' in life insurance?
The time frame within which the insurance company can contest the policy
ExplanationTime frame for policy challenges.
#4
What is the 'waiting period' in the context of life insurance?
The time a policyholder must wait before making a claim
ExplanationTime before claim eligibility.
#5
What is the purpose of the 'cash dividend option' in a life insurance policy?
To receive dividends in cash
ExplanationOption to receive cash dividends.
#6
What is the primary purpose of a 'beneficiary' in a life insurance policy?
To receive the death benefit upon the insured person's death
ExplanationRecipient of the insurance payout.
#7
What does 'underwriting' mean in the context of life insurance?
The process of assessing and evaluating risk for insurance purposes
ExplanationRisk assessment for insurance eligibility.
#8
In life insurance, what is the purpose of the 'incontestability clause'?
To prevent the insurance company from contesting the policy after a certain period
ExplanationPrevents policy challenges after a period.
#9
What is the 'annuity' feature in life insurance policies?
A series of periodic payments to the policyholder
ExplanationPeriodic payment feature.
#10
In life insurance, what does 'term life insurance' typically cover?
Coverage for a specified term or period
ExplanationCoverage for a defined time.
#11
What is the 'face amount' of a life insurance policy?
The amount paid to the beneficiary upon the insured person's death
ExplanationBeneficiary payout amount.
#12
What is the 'cash surrender value' of a life insurance policy?
The amount the policyholder receives upon surrendering the policy before maturity
ExplanationValue received upon policy surrender.
#13
In life insurance, what is the role of the 'policyholder'?
To own and manage the life insurance policy
ExplanationOwner and manager of the policy.
#14
What does 'waiver of premium' mean in life insurance?
The insurance company waives the premium payment during a specified disability
ExplanationPremium waiver during disability.
#15
What is the 'underinsured motorist coverage' in life insurance?
Coverage for policyholders with insufficient life insurance
ExplanationCoverage for insufficient insurance.
#16
What does 'cash value accumulation' refer to in a life insurance policy?
The growth of cash value over time
ExplanationAccumulation of cash value.
#17
What is the primary purpose of the 'free look period' in life insurance?
To allow policyholders to review the policy and return it for a refund
ExplanationPeriod for policy review and return.