Life, Accident and Health Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What does the policyowner have the right to do with a life insurance policy?
✔✔Make changes such as naming beneficiaries or cancelling the policy
What is a beneficiary in life insurance?
✔✔The person or entity that receives the policy proceeds
What does face amount mean in a life insurance policy?
✔✔The amount paid at death or maturity
What is a premium?
✔✔The payment made to keep an insurance policy active
What happens if a life insurance premium is not paid on time?
✔✔The policy may lapse after the grace period
What is a grace period?
✔✔Extra time allowed to pay premiums without losing coverage
What does whole life insurance provide?
1
,✔✔Lifetime coverage with a savings component
What is term life insurance?
✔✔Coverage for a specific period of time
What does cash value refer to in permanent life insurance?
✔✔The savings portion that grows over time
What is insurable interest?
✔✔A financial or emotional interest in the insured’s life
When must insurable interest exist?
✔✔At the time the policy is purchased
What is underwriting?
✔✔The process of evaluating risk before issuing a policy
What does the incontestability clause protect against?
✔✔Policy cancellation after a certain time except for fraud
What is the suicide clause?
✔✔A provision limiting payout if suicide occurs within a set period
2
, What is accidental death benefit?
✔✔An extra payment if death results from an accident
What does misrepresentation mean in insurance?
✔✔Providing false or incomplete information on an application
What is the purpose of a policy loan?
✔✔To borrow money from the policy’s cash value
What happens if a policy loan is not repaid?
✔✔It reduces the death benefit
What is a rider in insurance?
✔✔An add-on that modifies policy coverage
What does waiver of premium rider do?
✔✔Waives premiums if the insured becomes disabled
What is the purpose of health insurance?
✔✔To cover medical and healthcare expenses
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What does the policyowner have the right to do with a life insurance policy?
✔✔Make changes such as naming beneficiaries or cancelling the policy
What is a beneficiary in life insurance?
✔✔The person or entity that receives the policy proceeds
What does face amount mean in a life insurance policy?
✔✔The amount paid at death or maturity
What is a premium?
✔✔The payment made to keep an insurance policy active
What happens if a life insurance premium is not paid on time?
✔✔The policy may lapse after the grace period
What is a grace period?
✔✔Extra time allowed to pay premiums without losing coverage
What does whole life insurance provide?
1
,✔✔Lifetime coverage with a savings component
What is term life insurance?
✔✔Coverage for a specific period of time
What does cash value refer to in permanent life insurance?
✔✔The savings portion that grows over time
What is insurable interest?
✔✔A financial or emotional interest in the insured’s life
When must insurable interest exist?
✔✔At the time the policy is purchased
What is underwriting?
✔✔The process of evaluating risk before issuing a policy
What does the incontestability clause protect against?
✔✔Policy cancellation after a certain time except for fraud
What is the suicide clause?
✔✔A provision limiting payout if suicide occurs within a set period
2
, What is accidental death benefit?
✔✔An extra payment if death results from an accident
What does misrepresentation mean in insurance?
✔✔Providing false or incomplete information on an application
What is the purpose of a policy loan?
✔✔To borrow money from the policy’s cash value
What happens if a policy loan is not repaid?
✔✔It reduces the death benefit
What is a rider in insurance?
✔✔An add-on that modifies policy coverage
What does waiver of premium rider do?
✔✔Waives premiums if the insured becomes disabled
What is the purpose of health insurance?
✔✔To cover medical and healthcare expenses
3
