Actual Questions & Verified
_____________Quiz____________?
purpose of life insurance -
Answer✓✓
pay a death benefit to beneficiaries when the insured dies
_____________Quiz____________?
life insurance for personal use -
Answer✓✓
death benefit serves to replace the insured's future loss income and pay expenses that occur
upon death, living benefits
_____________Quiz____________?
Group insurance vs. individual -
Answer✓✓
-covers many non-related people
-less expensive per person
_____________Quiz____________?
group insurance eligibility -
Answer✓✓
-group cannot be formed for the express purpose of purchasing it
1
, -employers
-labor unions
-trade and professional association groups
_____________Quiz____________?
individual insurance -
Answer✓✓
covers one individual
_____________Quiz____________?
ordinary life insurance -
Answer✓✓
face amounts grater than $25,000, premiums are payable monthly, quarterly, semi annually,
annually; includes every type of life insurance and annuity product, flexible options
_____________Quiz____________?
industrial life insurance -
Answer✓✓
"burial insurance", small face amounts 1000 or 2500 to 10,000; premiums paid frequently, no
medical exam, agent meets personally with policy owner to collect premium
_____________Quiz____________?
permanent life insurance -
Answer✓✓
provides life ins for the insured's entire life; coverage is provided until insured dies or
reaches 120 years old
_____________Quiz____________?
True or false: Level premium of permanent life insurance - once the policy is issued
premiums remain level for the full duration of policy coverage -
2
, Answer✓✓
true
_____________Quiz____________?
Permanent life insurance accumulation element within the policy is __________
____________ -
Answer✓✓
cash value
_____________Quiz____________?
Term life insurance -
Answer✓✓
coverage is temporary, time limit can be as short as one year, as long as 20+ years or until
the insured reaches a specific age (ex. 65). No cash value, costs less than permanent life,
premiums increase with age
_____________Quiz____________?
Participating vs nonparticipating life insurance -
Answer✓✓
par - issued by mutual ins co's, policyowner is eligible for policy dividends declared by the
insurance co; dividends are paid from insurers divisible surplus
non par - issued by stock ins co, no policy dividends
_____________Quiz____________?
fixed life insurance -
Answer✓✓
insurer guarantees fixed death benefit and min rate of return on policy's cash value,
premiums are invested in co's general account
3
_____________Quiz____________?
purpose of life insurance -
Answer✓✓
pay a death benefit to beneficiaries when the insured dies
_____________Quiz____________?
life insurance for personal use -
Answer✓✓
death benefit serves to replace the insured's future loss income and pay expenses that occur
upon death, living benefits
_____________Quiz____________?
Group insurance vs. individual -
Answer✓✓
-covers many non-related people
-less expensive per person
_____________Quiz____________?
group insurance eligibility -
Answer✓✓
-group cannot be formed for the express purpose of purchasing it
1
, -employers
-labor unions
-trade and professional association groups
_____________Quiz____________?
individual insurance -
Answer✓✓
covers one individual
_____________Quiz____________?
ordinary life insurance -
Answer✓✓
face amounts grater than $25,000, premiums are payable monthly, quarterly, semi annually,
annually; includes every type of life insurance and annuity product, flexible options
_____________Quiz____________?
industrial life insurance -
Answer✓✓
"burial insurance", small face amounts 1000 or 2500 to 10,000; premiums paid frequently, no
medical exam, agent meets personally with policy owner to collect premium
_____________Quiz____________?
permanent life insurance -
Answer✓✓
provides life ins for the insured's entire life; coverage is provided until insured dies or
reaches 120 years old
_____________Quiz____________?
True or false: Level premium of permanent life insurance - once the policy is issued
premiums remain level for the full duration of policy coverage -
2
, Answer✓✓
true
_____________Quiz____________?
Permanent life insurance accumulation element within the policy is __________
____________ -
Answer✓✓
cash value
_____________Quiz____________?
Term life insurance -
Answer✓✓
coverage is temporary, time limit can be as short as one year, as long as 20+ years or until
the insured reaches a specific age (ex. 65). No cash value, costs less than permanent life,
premiums increase with age
_____________Quiz____________?
Participating vs nonparticipating life insurance -
Answer✓✓
par - issued by mutual ins co's, policyowner is eligible for policy dividends declared by the
insurance co; dividends are paid from insurers divisible surplus
non par - issued by stock ins co, no policy dividends
_____________Quiz____________?
fixed life insurance -
Answer✓✓
insurer guarantees fixed death benefit and min rate of return on policy's cash value,
premiums are invested in co's general account
3
