Life Insurance

1. What is the primary purpose of life insurance?

• A. To save for retirement

• B. To provide financial protection to beneficiaries after the policyholder’s death

• C. To pay for daily expenses

• D. To increase credit score

2. Which type of life insurance provides coverage for a specific period of time?

• A. Whole life insurance

• B. Universal life insurance

• C. Term life insurance

• D. Variable life insurance

3. What does a beneficiary of a life insurance policy receive?

• A. The monthly premium

• B. A loan from the insurance company

• C. The death benefit upon the insured’s passing

• D. An annual bonus

4. Which of the following factors typically affects life insurance premiums the most?

• A. The insured’s credit score

• B. The insured’s favorite hobby

• C. The insured’s age and health

• D. The insured’s car model

5. What is a cash value component in a life insurance policy?

• A. A discount on future premiums

• B. A savings portion that can grow over time in permanent policies

• C. The amount paid in taxes on the policy

• D. The fee charged for early cancellation