Life Insurance Basics Quiz

What is life insurance?

• A savings account for retirement

• A contract that pays money to a beneficiary after the insured's death

• A bank loan

• A type of tax refund

Who is the policyholder?

• The person who receives the payout

• The person who owns the life insurance policy

• The insurance agent

• The employer

Which of the following is a benefit of buying life insurance young?

• Higher taxes

• More coverage options

• Lower premiums

• Better job opportunities

What does "beneficiary" mean in a life insurance policy?

• The government

• The policy owner

• The person who gets the death benefit

• The bank

Which policy is guaranteed to last your whole life and build cash value?

• Term Life Insurance

• Whole Life Insurance

• Group Life Insurance

• Travel Insurance

What is a common reason someone would get Group Life Insurance?

• It's required by law

• It's offered through their employer

• It's free from the government

• It comes with credit cards

What is a premium?

• The bonus at the end of the policy

• The amount paid regularly to keep the policy active

• The tax on the payout

• A one-time fee when you sign up

What is the average monthly cost of a Term Life Insurance policy?

• $150-300/month

• $25-30/month

• $0-10/month

• $75-100/month

Life insurance is legally required in the United States.

• True

• False

Life insurance payouts are usually tax-free.

• True

• False