Learn just how much that you know about Life Insurance.
Use this simple quiz to test your Life Insurance IQ. Choose your answers carefully, then use the form at the bottom of the page to get your results. If you need help call a professional life insurance specialist toll free at
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283-4749
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After you have finished,
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1.
What is the first thing to consider when deciding how much coverage you need?
a.
What kinds of policies will meet your needs
b.
How many years you think you have left in this life
c.
What type of life insurance policy you have had in the past
d.
Decide how much you need, how long you need it, and what you can afford to pay
2.
What is double indemnity?
a.
A feature added providing for the waiver of premium and sometimes payment of monthly income
b.
A policy where the death benefit and cash value are not guaranteed
c.
A provision in a life insurance policy for payment of an additional benefit if death is caused by an accident
d.
A policy that insures two lives instead of one
3.
What is a beneficiary?
a.
Someone who has a lot of benefits
b.
Whoever is named in an insurance policy as the recipient of the funds in the policy if the policy holder dies
c.
A spouse
d.
A dependent child
4.
When an individual surrenders their life insurance policy, they are:
a.
Standing in the agent's office, waving a white flag back and forth
b.
Canceling a life insurance policy before the maturity date
c.
Gifting the value of the policy to the benefactor prior to his/her death
d.
Transferring the policy to another individual
5.
What is a universal life insurance policy?
a.
A policy that may be canceled at any time and does not accumulate cash value
b.
A flexible, adjustable life policy that combines annually renewable term life insurance with an interest bearing fund
c.
A policy for which you can name your pet the beneficiary
d.
A life insurance policy that pays benefits to all of your family members at your death
6.
What are some of the things insurance companies look at to determine the rates I will be charged for life insurance
a.
Family health history
b.
Any dangerous hobbies you might pursue
c.
Your personal health habits
d.
All of the above
7.
An existing life insurance policy can be used to provide for the repayment of an outstanding mortgage loan
True
False
8.
What is the difference between term life insurance and whole life insurance?
a.
Term life insurance is coverage at a guaranteed rate for a specified period of time, while whole life insurance covers you for as long as you live if your premiums are paid
b.
Term life insurance is coverage that ends at the age of 40 while whole life insurance covers you until you reach the age of 60
c.
Term life insurance is a flexible policy that lets you vary your premium payments
9.
In life insurance, a conversion feature means
a.
The policy holder can convert the policy to cash
b.
The policy can be converted to any kind of insurance (auto, health, etc.)
c.
The owner of a term life insurance policy can convert the policy to a permanent life insurance plan without evidence of insurability
d.
All of the above
10.
A life insurance policy can be canceled due to health reasons
True
False
11.
Which of the following best describes yearly renewable term life insurance?
a.
After each year, the policy holder may terminate the policy, receiving the money they have invested plus 25%
b.
The policy initially has a lower premium, however, the premium rises each year
c.
Premiums remain level for the term of the loan
12.
In terms of life insurance, Guaranteed Insurability means
a.
Anyone, anytime can receive life insurance
b.
The policy holder has the option to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability
c.
No matter how an individual passes, life insurance will still be distributed to the benefactor
13.
What is the rule of thumb on how much life insurance coverage you need?
a.
Your total expected lifetime income
b.
Five to seven times your annual gross income
c.
Your age multiplied by 10
d.
The amount you believe your life is worth
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