DELAWARE LIFE INSURANCE EXAM SCRIPT
2026 IMPORTANT TERMS AND CONCEPTS
EXPLAINED
◉ Insured . Answer: Person covered by the insurance policy; may or
may not be the policyowner
◉ Insurer (Principal) . Answer: The company who issues an
insurance policy
◉ Lapse . Answer: Policy termination due to nonpayment of
premium
◉ Premium . Answer: The money paid to the insurance company for
the insurance policy
◉ What is insurance? . Answer: A contract in which one party (the
insurance company) agrees to indemnify/compensate/make whole
the insured party against loss, damage, or liability arising from an
unknown event.
◉ In life insurance, the policy protects what? . Answer: Survivors
from losses suffered after an insured's death.
, ◉ Insurance transfers what? . Answer: The risk of loss from an
individual or a business entity to an insurance company. That then
spreads the cost of unexpected losses to many individuals.
◉ If there was no life insurance mechanism, who would have to bear
the cost of a loss? . Answer: The individual who suffered the loss.
◉ Life insurance protects against what? . Answer: Financial loss
associated with an insured's death. This is done by paying the death
benefit to the beneficiaries following the death of the insured.
◉ What does the policyowner of the insurance contract pay to the
insurer? . Answer: A premium.
◉ What does the insurer issue to the insured? . Answer: A policy.
◉ In the event of the insured's death, what does the insurer pay? .
Answer: The death benefit to the beneficiary.
◉ Who may purchase life insurance? . Answer: An individual or a
business.
2026 IMPORTANT TERMS AND CONCEPTS
EXPLAINED
◉ Insured . Answer: Person covered by the insurance policy; may or
may not be the policyowner
◉ Insurer (Principal) . Answer: The company who issues an
insurance policy
◉ Lapse . Answer: Policy termination due to nonpayment of
premium
◉ Premium . Answer: The money paid to the insurance company for
the insurance policy
◉ What is insurance? . Answer: A contract in which one party (the
insurance company) agrees to indemnify/compensate/make whole
the insured party against loss, damage, or liability arising from an
unknown event.
◉ In life insurance, the policy protects what? . Answer: Survivors
from losses suffered after an insured's death.
, ◉ Insurance transfers what? . Answer: The risk of loss from an
individual or a business entity to an insurance company. That then
spreads the cost of unexpected losses to many individuals.
◉ If there was no life insurance mechanism, who would have to bear
the cost of a loss? . Answer: The individual who suffered the loss.
◉ Life insurance protects against what? . Answer: Financial loss
associated with an insured's death. This is done by paying the death
benefit to the beneficiaries following the death of the insured.
◉ What does the policyowner of the insurance contract pay to the
insurer? . Answer: A premium.
◉ What does the insurer issue to the insured? . Answer: A policy.
◉ In the event of the insured's death, what does the insurer pay? .
Answer: The death benefit to the beneficiary.
◉ Who may purchase life insurance? . Answer: An individual or a
business.
