Auto and Life Insurance Quiz

The average funeral costs between $7,000 and $10,000 today in North America.

• True
• False

Life insurance can be helpful in many ways after someone has passed away. Please select all that apply.

• Provide income for family members
• Pay off financial obligations
• Assist with funeral and burial costs
• All of these

The person or people designated to receive the death benefit from a life insurance policy when the insured dies.

• Insurer
• Agent
• Beneficiary
• Dependent

The amount of money the policy owner will receive if the policy is cancelled and surrendered to the insurance company, unless there is an outstanding loan.

• Cash Value
• Pay Out
• Death Benefit
• None of the above
  

The death benefit is amount of money paid when a person insured under a life insurance policy dies.

• True
• False

The person receiving insurance coverage under the insurance policy.

• Beneficiary
• Insurer
• Agent
• Dependent

The amount you pay monthly in exchange for insurance coverage.

• Policy
• Premium
• Deductible
• Life expectancy

Term coverage allows a person to be insured for their entire life.

• True 
• False

The rate at which life insurance policies terminate because of failure to pay the premiums.

• Life expectancy rate
• Premium rate
• Lapse rate
  
• Dividend

The two types of life insurance categories are

• Whole and Term
• Whole and Variable
• Term and Variable
• Term and Fixed