Life and Health Insurance Exam 1
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the main purpose of health insurance?
A. Provide income at retirement
✔✔B. Cover medical expenses
C. Protect property
D. Pay funeral costs
Who is the policyowner in a life insurance contract?
✔✔A. The person who owns the policy
B. The insured only
C. The beneficiary
D. The insurance agent
Who receives the death benefit in a life insurance policy?
A. The insurer
B. The agent
✔✔C. The beneficiary
D. The policyowner always
What is a premium?
1
,A. The payout after a claim
✔✔B. The payment made to keep insurance active
C. A tax fee
D. A loan amount
Which life insurance policy provides coverage for a specific period?
✔✔A. Term life insurance
B. Whole life insurance
C. Universal life insurance
D. Endowment insurance
Which policy combines insurance protection with savings?
A. Term life
✔✔B. Whole life
C. Accident-only
D. Critical illness
What happens when a term life policy expires?
A. Cash value is paid
B. Premiums decrease
✔✔C. Coverage ends
D. Benefits increase
2
,What is cash value?
A. Money paid to beneficiaries
✔✔B. Savings component in permanent life insurance
C. Agent commission
D. Medical benefit
Which type of insurance covers hospital stays and doctor visits?
✔✔A. Health insurance
B. Life insurance
C. Property insurance
D. Travel insurance
What is the insured?
A. The company providing insurance
✔✔B. The person whose life or health is covered
C. The agent
D. The beneficiary
What is underwriting?
✔✔A. Process of evaluating risk
B. Paying claims
C. Marketing insurance
D. Renewing policies
3
, Which factor most affects life insurance premiums?
A. Education level
✔✔B. Age
C. Address
D. Marital status
What does a beneficiary designation specify?
A. Policy cost
B. Coverage type
✔✔C. Who receives benefits
D. Policy duration
Which policy pays benefits only if death occurs during the term?
✔✔A. Term life insurance
B. Whole life insurance
C. Universal life insurance
D. Variable life insurance
What is a deductible in health insurance?
A. Monthly payment
✔✔B. Amount paid by insured before coverage starts
C. Total policy limit
4
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the main purpose of health insurance?
A. Provide income at retirement
✔✔B. Cover medical expenses
C. Protect property
D. Pay funeral costs
Who is the policyowner in a life insurance contract?
✔✔A. The person who owns the policy
B. The insured only
C. The beneficiary
D. The insurance agent
Who receives the death benefit in a life insurance policy?
A. The insurer
B. The agent
✔✔C. The beneficiary
D. The policyowner always
What is a premium?
1
,A. The payout after a claim
✔✔B. The payment made to keep insurance active
C. A tax fee
D. A loan amount
Which life insurance policy provides coverage for a specific period?
✔✔A. Term life insurance
B. Whole life insurance
C. Universal life insurance
D. Endowment insurance
Which policy combines insurance protection with savings?
A. Term life
✔✔B. Whole life
C. Accident-only
D. Critical illness
What happens when a term life policy expires?
A. Cash value is paid
B. Premiums decrease
✔✔C. Coverage ends
D. Benefits increase
2
,What is cash value?
A. Money paid to beneficiaries
✔✔B. Savings component in permanent life insurance
C. Agent commission
D. Medical benefit
Which type of insurance covers hospital stays and doctor visits?
✔✔A. Health insurance
B. Life insurance
C. Property insurance
D. Travel insurance
What is the insured?
A. The company providing insurance
✔✔B. The person whose life or health is covered
C. The agent
D. The beneficiary
What is underwriting?
✔✔A. Process of evaluating risk
B. Paying claims
C. Marketing insurance
D. Renewing policies
3
, Which factor most affects life insurance premiums?
A. Education level
✔✔B. Age
C. Address
D. Marital status
What does a beneficiary designation specify?
A. Policy cost
B. Coverage type
✔✔C. Who receives benefits
D. Policy duration
Which policy pays benefits only if death occurs during the term?
✔✔A. Term life insurance
B. Whole life insurance
C. Universal life insurance
D. Variable life insurance
What is a deductible in health insurance?
A. Monthly payment
✔✔B. Amount paid by insured before coverage starts
C. Total policy limit
4
