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WorksheetsIntroduction to Life Insurance
Total questions: 10
Worksheet time: 2mins
What is the primary purpose of a life policy?
To pay for groceries
To protect your home against fire
To provide financial support to beneficiaries after the policyholder's death
To offer investment returns only
Which of the following is NOT a common use of a life insurance payout?
Paying off debts
Funding a family holiday
Covering funeral expenses
Supporting dependents financially
In South Africa, what is the payout from a life policy typically called?
Interest Return
Funeral Benefit
Death Benefit
Dividend
Which type of life policy covers you for your entire life, as long as you pay premiums?
Term Life Insurance
Whole Life Insurance
Credit Life Insurance
Funeral Policy
What happens if you outlive a Term Life Insurance policy?
You get a lump sum payout
Your premiums are refunded
There is no payout
You are automatically covered for life
What kind of life policy is typically used to pay for a person’s funeral costs?
Whole Life Insurance
Funeral Policy
Credit Life Insurance
Endowment Policy
Are life insurance payouts generally taxable in South Africa?
Yes, always
Only if the payout is over R1 million
No, they are usually tax-free
Only if no beneficiary is listed
What is the advantage of naming a beneficiary in a life policy?
They have to pay estate taxes
The payout goes directly to them and avoids delays
They will automatically inherit your entire estate
It increases your monthly premium
What is a Credit Life Insurance policy used for?
Investing in unit trusts
Paying for medical aid
Settling debt if the policyholder dies
Funding a child’s education
Who typically needs a life policy the most?
Teenagers
People with no debt and no dependents
People with dependents or large financial obligations
Tourists visiting South Africa
