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Total questions: 20
Worksheet time: 20mins
Maya and Grace are reviewing their new life insurance policy. They want to know: what exactly makes up the entire contract in a life insurance policy?
Policy + Copy of Application
Policy + Beneficiary Designation
Policy + Premium Payment
Policy + Insurer's Promise
Lily, Maya, and Aria are reviewing their new insurance policy. Can you help them figure out where the insuring clause is usually found?
On the face page of the policy
On the last page of the policy
In the premium payment section
In the exclusions section
Imagine Anika and Rohan are learning about insurance. What exciting promise does the insurer make in the insuring clause?
To allow policy loans
To adjust premiums based on age
To provide a free look period
To pay benefits specified in the contract
Aiden and Sophia want to make a deal! What must both of them provide to make their contract valid?
Consideration
A written agreement
A beneficiary designation
A grace period
Nora forgot to pay her insurance premium on time! Luckily, her policy has a grace period. What does this grace period help prevent for Nora?
Misstatement of age or gender
Immediate payment of premiums
Unintentional lapse of the policy
Changes to the policy without consent
Imagine Ava accidentally writes the wrong age or gender on her insurance application. What will happen next?
The policyowner must pay a penalty
The insurer denies all claims
The premium or benefits are adjusted
The policy is canceled
Imagine Aria just bought a life insurance policy! Which of the following rights does she have as the policyowner?
Changing the grace period duration
Naming and changing the beneficiary
Adjusting the insurer's promise
Modifying the exclusions
Abigail and Aiden are discussing life insurance. Abigail asks, "Hey Aiden, do you know what a collateral assignment is?" Can you help them out?
A change in beneficiary designation
A loan taken against the policy
A partial and temporary transfer of policy ownership
A permanent transfer of policy ownership
Evelyn and Ethan just bought new insurance policies! Can you help them remember how many days they have as a free look period to review their new policies?
30 days
15 days
10 days
5 days
Emma just realized her insurance policy has lapsed! What does she need to do to bring it back to life?
Increase the premium payment frequency
Provide a new application
Change the beneficiary designation
Pay all back due premiums plus interest
Mia, Ethan, and Lily are discussing life insurance policies. Which of the following is a common exclusion they should watch out for?
Grace period
Misstatement of age
Policy loans
War or military service
Lily is reading her new life insurance policy and comes across a clause about suicide within the first 2 years. What would happen if the insured commits suicide during this period?
The premiums paid are returned
The beneficiary receives partial benefits
The death benefit is paid in full
The policy is canceled
Daniel, Charlotte, and Kai are discussing beneficiary designations. If a policy says the payout will be distributed 'per capita,' what does that mean?
By the bloodline
By the head
By the estate
By the trust
Isla and Kai are discussing their inheritance plans. Isla asks, "What does 'per stirpes' mean when naming beneficiaries?" Can you help them out?
By the trust
By the estate
By the head
By the bloodline
Imagine William took out a life insurance policy and named Maya and Anika as his beneficiaries. But what if, at the time of William's passing, none of his chosen beneficiaries are alive? What happens to the insurance proceeds?
The proceeds are paid to the insured's estate
The insurer keeps the proceeds
The policy is canceled
The premiums are refunded
Noah and Abigail are learning about life insurance. Noah wants to name Mason as his beneficiary, but he's not sure if he should make Mason a revocable or irrevocable beneficiary. What is the main difference between these two types?
Irrevocable beneficiaries cannot receive proceeds
Irrevocable beneficiaries can be changed anytime
Revocable beneficiaries require written consent for changes
Revocable beneficiaries can be changed anytime
Imagine Benjamin names Mason as his primary beneficiary and Lily as his contingent beneficiary in his life insurance policy. What does the Common Disaster Clause ensure in this scenario?
The contingent beneficiary receives the proceeds if the primary beneficiary dies first
The primary beneficiary receives the proceeds
The insured's estate receives the proceeds
The policyowner can change the beneficiary
Priya is curious about her life insurance policy and hears about something called a "policy loan." What exactly is a policy loan?
A loan taken against the policy's cash value
A loan to pay premiums
A loan to change the beneficiary
A loan to reinstate the policy
Jackson just found out about the automatic premium loan feature in his insurance policy. What does this handy feature help him avoid?
Changes to the policy
Unintentional lapse of the policy
Immediate payment of benefits
Misstatement of age
Imagine Zoe takes out a policy loan and forgets to pay it back. What will happen to her life insurance policy?
The beneficiary designation is changed
The premiums are increased
The face amount is reduced by the outstanding loan amount plus interest
The policy is canceled
