#1
Which of the following is a common provision in a life insurance policy?
Cash surrender value
ExplanationAmount received upon surrendering the policy before maturity.
#2
What does the term 'death benefit' refer to in a life insurance policy?
The amount paid to the beneficiary upon the death of the insured
ExplanationPayment to beneficiary upon insured's death.
#3
Which of the following is a factor in determining the premium for a life insurance policy?
The policyholder's age and health
ExplanationPremium influenced by age and health of policyholder.
#4
What is a 'rider' in a life insurance policy?
An amendment or addition to the policy that provides extra coverage
ExplanationAdditional coverage option added to the policy.
#5
What is the primary purpose of a 'beneficiary designation' in a life insurance policy?
To designate who will receive the death benefit
ExplanationSpecifies recipient of the death benefit.
#6
Which of the following is NOT typically covered under a life insurance policy?
Loss of job benefit
ExplanationJob loss coverage not included in life insurance.
#7
What is the 'grace period' in a life insurance policy?
The period during which the policyholder can renew the policy without penalty
ExplanationRenewal period without penalty for the policyholder.
#8
What is the purpose of the 'cash value' in a permanent life insurance policy?
To accumulate savings that can be accessed by the policyholder
ExplanationSavings accumulation for policyholder.
#9
In a term life insurance policy, what happens at the end of the term?
The policy expires with no payout if the insured is still alive
ExplanationExpiration with no payout if insured survives term.
#10
What is the 'contestability period' in a life insurance policy?
The period during which the insurance company can contest the validity of the policy
ExplanationPeriod for contesting policy validity by the insurer.
#11
What is the purpose of the 'waiver of premium' provision in a life insurance policy?
To waive the premium if the insured becomes disabled
ExplanationPremium waiver for disabled insured.
#12
What is the 'accelerated death benefit' in a life insurance policy?
An advance on the death benefit if the insured is diagnosed with a terminal illness
ExplanationAdvance on death benefit for terminal illness.
#13
Which of the following is a feature of a universal life insurance policy?
Ability to adjust death benefit and premium payments
ExplanationFlexibility to adjust death benefit and premiums.
#14
What is the purpose of the 'paid-up additions' option in a life insurance policy?
To purchase additional coverage without evidence of insurability
ExplanationOption to buy additional coverage without further evidence of insurability.
#15
What is the 'nonforfeiture option' in a life insurance policy?
An option to continue the policy without paying premiums
ExplanationOption to continue policy without premium payments.