Life Insurance Quiz

One who handles transactions with the life insurance company.

• Insured

• Policyholder

• Termed

• Covered

What is the most popular type of life insurance?

• Annual Renewable Term

• Level Premium Term

• Convertible Term

• Level Term

Answer explanation

Level term provides a consistent, or "level", death benefit and premium throughout the specified duration.

Is it possible for one to renew their insurance with lower policy rates without changing their insurance provider?

• Yes, it is always possible

• No, it is never possible

• Yes, if there is a re-entry option and they have consistently paid their premiums

• Yes, if there is a re-entry option and they can provide proof on insurability

The "convertibility provision" allows a temporary life insurance policy to be converted to a permanent life insurance policy.

• True

• False

Can life insurance terms be renewed if the insured is no longer insurable?

• Yes

• No

• Depends on the policy

Answer explanation

Some life insurance policies are renewable, meaning that they can be renewed regardless on insurability, but some are not.

One whose death is covered by their life insurance.

• Policyholder

• Termed

• Insured

• Covered

The insured and the policyholder are always the same person.

• True

• False

Answer explanation

The policyholder and the insured can be different people.

What does "increasing" or "decreasing" term insurance mean?

• The death benefit increases or decreases over time

• The premium increases or decreases over time

• The term increases or decreases over time

• The attained age increases or decreases over time

What is the oldest form of life insurance?

• Annual Renewable Term (ART)

• Convertible Term

• Level Term

• Yearly Renewable Term (YRT)

Answer explanation

ART and YRT are just different names for the same thing.

What is Term Life Insurance?

• Temporary protection defined in years

• Protection that is renewed in "terms"

• Permanent protection

• Temporary protection defined by the age of the insured