Life Insurance Basics Quiz

What is the primary purpose of life insurance?

• To provide a death benefit to beneficiaries

• To buy a new car

• To invest in the stock market

• To pay for vacations

What is a key feature of term life insurance?

• It has a cash value component

• It guarantees investment returns

• It lasts for the insured's entire life

• It provides coverage for a specific term

Which type of life insurance includes a savings component?

• Auto insurance

• Whole life insurance

• Term life insurance

• Health insurance

What is a benefit of whole life insurance?

• Short-term coverage

• Fixed premiums

• No death benefit

• Variable premiums

What is a characteristic of universal life insurance?

• Flexible premiums

• No investment options

• Fixed interest rate on cash value

• No death benefit

What is a risk associated with variable life insurance?

• Exposure to market fluctuations

• Fixed premiums

• No cash value

• Guaranteed returns

Which type of life insurance is also known as 'ordinary life insurance'?

• Universal life insurance

• Variable life insurance

• Whole life insurance

• Term life insurance