Life Insurance Quiz

What is the probability that all the cards picked from the bag are red if three red cards and two white cards are in a bag?

• 1/10

• 3/10

• 1/2

• 27/125

What are life insurance premiums?

• The amount of coverage that a policy provides

• The amount you pay for the policy

• The cash value of the insurance

• The list of beneficiaries

What is a mortality table?

• A list of beneficiaries

• A table showing the cash value of different insurance policies

• A list that estimates the number of people expected to die in each age group

• A table showing the different types of life insurance policies

Which type of life insurance policy covers the policyholder for a specified period of time, usually 5, 10, or 20 years?

• Whole life insurance

• Term life insurance

• Universal life insurance

• Variable life insurance

What is the main factor that determines the premium rate for life insurance policies?

• The type of policy bought

• The age of the policyholder

• The number of beneficiaries

• The cash value of the policy

What type of life insurance policy combines a life insurance part with an investment feature?

• Group term life insurance

• Increasing term insurance

• Whole life insurance

• Variable life insurance

Which type of life insurance policy is known for having a cash value that can be borrowed against or received if the policy is canceled before death?

• Group term life insurance

• Increasing term insurance

• Whole life insurance

• Universal life insurance

What is a characteristic of increasing term insurance?

• It has a decreasing premium over time.

• It is suitable for people who expect their financial needs to decrease over time.

• It has a premium that remains level throughout the term.

• It is often purchased by couples looking to cover a declining balance on a mortgage.

What is the total cost of Jack's 10-year level term insurance policy with a face value of $750,000 and an monthly premium of $76?

• $9,120
• $760

• $912

• $7,500

• $75,000

Gabriella's whole life premium increased from $123 to $166 per month when she increased the policy's face value. Find the percent increase to the nearest percent.

• A) 25%

• B) 35%

• C) 45%

• D) 55%