Primerica Life Insurance Exam (Latest Update);
Questions and Answers(A+)
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
, Primerica Life Insurance Exam (Latest Update);
Questions and Answers(A+)
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
Questions and Answers(A+)
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
, Primerica Life Insurance Exam (Latest Update);
Questions and Answers(A+)
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
