WorksheetsUnderstanding Life Insurance Basics
Total questions: 20
Worksheet time: 10mins
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
If you want your life insurance to help save money for the future, which type should you consider?
Term Life Insurance
Whole Life Insurance
Travel Insurance
Renter’s Insurance
What happens if you stop paying your life insurance premiums?
The policy stays active forever
The policy may end and you lose coverage
You get more money
The premium goes down
Who decides who the beneficiary is on a life insurance policy?
The insurance company
The policyholder
The government
The agent
If someone wants to leave money to their family if they die, what should they do?
Buy a car
Get life insurance and name their family as beneficiaries
Open a savings account
Buy health insurance
Which of these is a reason someone might buy term life insurance?
To have coverage for a certain number of years
To cover dental bills
To save for retirement
To get a loan
If a person wants to change who gets the money from their life insurance, what should they do?
Change the beneficiary on their policy
Cancel the policy
Stop paying premiums
Buy a new car
What is the main difference between term and whole life insurance?
Term is for a set time, whole is for life
Term is more expensive
Whole life never pays out
Term covers health costs
If someone wants to pay less for life insurance, which type might they choose?
Whole Life Insurance
Term Life Insurance
Universal Life Insurance
Health Insurance
What does the insurance company do when the insured person dies and the policy is active?
Pays the death benefit to the beneficiary
Cancels the policy
Increases the premium
Sells the policy
Which of these is a key term in life insurance?
Deductible
Premium
Copay
Out-of-pocket maximum
