Life Insurance Basics. Part #1. 9 questions. Ready to go!

WHich of these are names of two main types of life insurance?

Hint: "term vs. perm."

• Car insurance and home insurance

• Travel insurance and pet insurance

• Term life insurance and permanent life insurance

• Health insurance and dental insurance

Who is the 'policyholder' in a life insurance policy ?

• The person who receives the policy benefits

• The person who owns the policy. The person who bought the insurance & therefore pays the premiums.

• The insurance agent who sold the policy

Which of these can affect the cost of your life insurance monthly premiums?

• Number of pets, favorite vacation spot, favorite sport

• Age, health, occupation, and lifestyle

• Height, weight, hair color

• Favorite color, favorite food, favorite movie

If your Monthly Life Insurance Premium is $50 , how much are you paying Annually?

(a)  

• $600 per year
• $300 per year

• $5,000 per year

• $500 per year

The beneficiary in a life insurance policy ....

• ...Receives the 'death benefit' ('the money') after the person who buys the life insurance passes away

• ...Pays the monthly premiums

What are the most important benefits of having life insurance?

• Ability to time-travel back to the 1800's for beneficiaries

• Financial security for loved ones, covering funeral expenses, and potential cash value accumulation

• Guaranteed immortality (living forever) for the insured

• Free vacations for policyholders

Why is it important to regularly review and update your life insurance coverage?

• To have an excuse to talk to your insurance agent

• To impress your friends and family

• To ensure that your coverage aligns with your current needs and financial situation.

• To keep up with the latest fashion trends

What happens to a life insurance policy if you stop paying your monthly premiums?

• The policyholder can claim a refund for the premiums (money) that you have already paid. You get money back.

• The insurance-coverage ends. You no longer have that life insurance policy!

  And the policy may be subject to reinstatement conditions

• The beneficiary receives a partial death benefit (a partial payment $)

How does life insurance provide financial protection

for loved ones who are "beneficiaries" ?

• By giving the insured a large sum of money while they are still alive.

• By providing a lump sum payment to beneficiaries upon the death of the insured person