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Life & Health Insurance Review

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Who is the beneficiary in a life insurance policy?

a)

The person who pays the insurance premium

b)

The insurance company

c)

The person that will receive the payout upon the death of the insured

d)

The person who sells the insurance policy

2.

What is a premium in the context of insurance?

a)

The amount of money received after the insured dies

b)

The payout given to the insurance agent

c)

The payment made to the insurance company to keep the policy active

d)

The cash value provided by a whole life insurance policy

3.

What does term insurance cover?

a)

For a specific period and has cash value

b)

For the whole life of the insured and is more expensive

c)

For a specific period, usually has lower premiums, and has no cash value

d)

For the whole life of the insured and provides cash value along with death benefits

4.

Which type of life insurance is more expensive but provides cash value along with death benefits?

a)

Term Insurance

b)

Health Insurance

c)

Whole Life Insurance

d)

Health Maintenance Organization (HMO)

5.

What is the main difference between HMO and PPO health plans?

a)

HMO offers a network of jobs, while PPO offers a network of schools

b)

HMO is designed for short-term care, while PPO is for long-term care

c)

HMO has higher costs and greater flexibility, while PPO has lower costs and is less flexible

d)

HMO has lower costs and is less flexible, while PPO has higher costs and greater flexibility

6.

Which type of insurance is specifically designed to cover the cost of medical care?

a)

Term Life Insurance

b)

Whole Life Insurance

c)

Health Insurance

d)

Auto Insurance

7.

The payment you make to the insurance company to keep your policy active, typically paid monthly

a)
Claim
b)
Deductible
c)
Premium
d)
Coverage
8.

Health Maintenance Organization (HMO)

a)
Health Maintenance Organization (HMO) is a type of health club membership.
b)

Based on a network of hospitals, doctors, and other health care providers that agree to coordinate care. 

c)

Designed to give you more flexibility in choosing which health care providers you see.

d)

A type of insurance plan that covers only emergency services.

9.

What is the basic definition of life insurance?

a)

Amount of money those you designate as beneficiaries will receive when you die.

b)
An investment in the stock market
c)

A contract between an insurer and a policy owner that guarantees the insurer pays a sum of money to named beneficiaries when the insured dies

d)
A type of car insurance
10.

Death benefit

a)

Payment made to beneficiaries upon the death of the insured

b)
Payment made to insured upon death
c)
Coverage for pre-existing conditions
d)
Monthly premium payment
11.

Factors to consider when choosing an insurance plan

a)

Favorite food

b)

Age

c)

Family health history

d)

Occupation

12.

Deductible

a)

The amount you must pay before insurance begins contributing to your medical bills.

b)
The premium paid for insurance coverage.
c)
The total cost of medical expenses covered by insurance.
d)
Amount an individual pays after insurance coverage kicks in.
13.

Suzie has 3 daughters and has long term financial goals. She wants to provide a death benefit to her beneficiaries. What term would be more beneficial? Whole term insurance or term life insurance plan?

a)
Whole term insurance plan
b)
Universal life insurance plan
c)
Variable life insurance plan
d)
Term life insurance plan
14.

What is term life insurance?

a)

Insurance for the terminally ill

b)

Insurance that expires after a specified period of time

c)

Insurance that allows you to set all of the terms of the contract

15.

Preferred Provider Organization (PPO)

a)

Insurance plan that restricts members to only see providers within the plan's network.

b)

Designed to give you more flexibility in choosing which health care providers you see.

c)

Insurance plan that covers all out-of-network healthcare costs.

d)

Type of health insurance plan that requires referrals for any medical services.