Understanding Life Insurance Basics

What is the main purpose of life insurance?

• To pay for car repairs

• To provide money to loved ones if the insured person dies

• To cover grocery bills

• To pay for vacations

Which type of life insurance only lasts for a set number of years?

• Whole Life Insurance

• Term Life Insurance

• Universal Life Insurance

• Health Insurance

What do you call the person who buys a life insurance policy?

• Beneficiary

• Policyholder

• Insurer

• Agent

What is a "beneficiary" in life insurance?

• The person who sells the policy

• The person who receives the money if the insured dies

• The company that provides insurance

• The person who pays the premiums

Which type of life insurance can build up savings over time?

• Term Life Insurance

• Whole Life Insurance

• Health Insurance

• Auto Insurance

What is a "premium" in life insurance?

• The amount paid to the beneficiary

• The amount you pay regularly to keep your insurance active

• The value of your car

• The interest earned on savings

If someone wants life insurance that lasts their whole life, which type should they choose?

• Term Life Insurance

• Whole Life Insurance

• Travel Insurance

• Dental Insurance

Which of these is NOT a type of life insurance?

• Term Life Insurance

• Whole Life Insurance

• Universal Life Insurance

• Homeowners Insurance

If a person wants life insurance for just 10 years, which type should they look for?

• Whole Life Insurance

• Term Life Insurance

• Universal Life Insurance

• Health Insurance

Why might someone choose whole life insurance instead of term life insurance?

• It is usually cheaper

• It lasts for their entire life and can build savings

• It covers car accidents

• It is required by law