Primerica Life Insurance questions with correct answers

Risk CORRECT ANSWER uncertainty of a financial loss; 2 types Two typed of risks CORRECT ANSWER Pure (Insurable) and speculative (uninsurable) Benefits of purchasing insurance? CORRECT ANSWER You get to transfer financial risk left after passing to insurance company Law of large numbers CORRECT ANSWER the larger the size of the group the more accurately the experience aka predicted losses of that group can be predicted Policy owner CORRECT ANSWER person who owns policy, pays premiums, and chooses the beneficiary Insured CORRECT ANSWER the life of the person the policy covers (could be policy owner) Insurer CORRECT ANSWER the insurance company which issues the policy and pays the death benefit to the beneficiary upon the death of the insured Beneficiary CORRECT ANSWER the person who receives death proceeds What does having life insurance create or do? CORRECT ANSWER Creates an immediate estate for the beneficiary which could help pay for daily expenses, mortgage, or college etc. Estate CORRECT ANSWER the net worth of a person; things you own minus things you owe Premium CORRECT ANSWER the amount you pay for coverage aka the money that goes into the policy; money policy owner pays to insurer