Life Insurance Quiz

What is the purpose of life insurance?

• To provide tax-free money in the event of death

• To cover medical expenses

• To buy a new car

• To pay for vacation expenses

Luna is applying for life insurance. On what factors will her risk class be determined?

• Her age and gender

• Her medical history and current conditions

• Her fitness level and height

• Her income and savings

What does the term length of a life insurance policy determine?

• The time period of coverage

• The premium amount

• The amount of money paid out

• The number of beneficiaries

Maya has a life insurance policy. If she passes away, what is the death benefit in her life insurance policy?

• The amount of money Maya paid for the insurance

• The amount of money paid to Ethan, her beneficiary, in the event of her death

• The cash value of Maya's policy

• The premium amount that Jackson, her insurance agent, set for her policy

Zoe has a life insurance policy. If something unfortunate happens to her, who is the beneficiary in her life insurance policy?

• Elijah, who owns the policy

• Rohan, who is the policy agent

• The insurance company

• The person who receives the death benefit

What is the cash value in a permanent life insurance policy used for?

• To pay the premiums

• To cover medical expenses

• As a living benefit or supplemental retirement fund

• To buy a new car

What is the premium in a life insurance policy?

• The cash value of the policy

• The policy loan amount

• The amount paid into the policy

• The death benefit amount

David is considering adding riders to his life insurance policy. What does this mean?

• He is considering different types of life insurance policies

• He is naming the primary beneficiaries of the policy

• He is thinking about additional optional features that can be added to the policy

• He is assessing the insurance company's risk

What factors determine the cost of a life insurance policy?

• Term length and death benefit amount

• Health conditions and fitness

• All of the above

• Age and gender

What is the main difference between term life and whole life insurance?

• Term life is cheaper and has a fixed price over the entire term

• Whole life provides lifetime coverage and builds cash value

• Term life has a cash value component, while whole life does not

• Whole life has an age cap for applying, while term life does not