Primerica Life Insurance Knowledge Check with Approved solutions | Latest 2023/2024

Primerica Life Insurance Knowledge Check with Approved solutions | Latest 2023/2024 Risk -- uncertainty of a financial loss; 2 types Two typed of risks -- Pure (Insurable) and speculative (uninsurable) Benefits of purchasing insurance? -- You get to transfer financial risk left after passing to insurance company Law of large numbers -- the larger the size of the group the more accurately the experience aka predicted losses of that group can be predicted Policyowner -- person who owns policy, pays premiums, and chooses the beneficiary Insured -- the life of the person the policy covers (could be policyowner) Insurer -- the insurance company which issues the policy and pays the death benefit to the beneficiary upon the death of the insured Beneficiary -- the person who receives death proceeds What does having life insurance create or do? -- Creates an immediate estate for the beneficiary which could help pay for daily expenses, mortgage, or college etc Estate -- the net worth of a person; things you own minus things you owe Premium -- the amount you pay for coverage aka the money that goes into the policy; money policy owner pays to insurer Proceeds -- the money that is paid out (protection) when the insurer dies; money insurer pays to beneficiary upon insureds death Synonyms/ other names for proceeds -- Coverage insurance amount face amount death benefit