Life Insurance Concepts and Beneficiaries

Front

What is the primary purpose of life insurance?

Back

To provide financial protection to beneficiaries after Policy holders death.

Front

What are the two main types of life insurance?

Back

Term and permanent

Front

How does term life insurance differ from whole life insurance?

Back

Term life covers a set period, while whole life lasts a lifetime.

Front

Who are the beneficiaries in a life insurance policy?

Back

The individual or entity receiving the death benefit.

Front

Which factor does NOT affect life insurance premiums? Options: The policyholders age, The policyholder's health, The coverage amount, The policyholders favorite color

Back

The policyholders favorite color

Front

What is a premium in life insurance?

Back

The fee paid to keep the policy active.

Front

What is cash Value in a permanent life insurance policy?

Back

Saving components that grow over time

Front

What is a rider in a life insurance Policy?

Back

An optional add on for extra benefits.

Front

Why might someone without dependents still need life insurance?

Back

To cover funeral cost or debt.

Front

What happens when a term life insurance policy expires?

Back

The coverage ends unless renewal or converted.