Life Assurance Flashcards
What is the primary purpose of life assurance cover?
To provide financial support to beneficiaries in the event of the policyholder’s death.
True or False: Life assurance cover is only beneficial for individuals with dependents.
False.
Fill in the blank: Life assurance cover can help cover __________ expenses.
funeral
What are the two main types of life assurance?
Term life assurance and whole life assurance.
Multiple Choice: Which of the following is NOT a factor that affects life assurance premiums?
Hair color
What is term life assurance?
A policy that provides coverage for a specific period.
True or False: Whole life assurance provides coverage for the entire life of the policyholder.
True.
What can life assurance cover be used for?
Debt repayment, income replacement, and covering living expenses.
Fill in the blank: Premiums for life assurance are generally based on __________ and health status.
age
What is a beneficiary in the context of life assurance?
The person or entity designated to receive the payout upon the policyholder’s death.
Multiple Choice: Which of the following factors might increase life assurance premiums?
Smoking status
Short answer: What is the significance of the waiting period in life assurance policies?
It is the time before the policy benefits become payable.
True or False: Life assurance can only be purchased by individuals over the age of 18.
False.
What does ‘underwriting’ refer to in life assurance?
The process of evaluating risk and determining premiums.
Fill in the blank: Life assurance can provide peace of mind, knowing that __________ will be taken care of.
loved ones
Multiple Choice: Which of the following is a potential exclusion in a life assurance policy?
Suicide within the first two years.
What is the main difference between life assurance and life insurance?
Life assurance provides coverage for the entire life, while life insurance typically covers a specific term.
True or False: The payout from life assurance is usually tax-free for the beneficiaries.
True.
What is a ‘rider’ in the context of life assurance?
An additional benefit that can be added to a life assurance policy.
Fill in the blank: Life assurance policies typically require a __________ to assess risk.
medical examination
Multiple Choice: Which of the following is a common reason for policy cancellation?
Failure to pay premiums.
What is ‘cash value’ in a whole life assurance policy?
The savings component that can accumulate over time.
True or False: Life assurance policies can be customized with various options.
True.
What does ‘level term’ mean in life assurance?
The death benefit remains the same throughout the term.
Fill in the blank: Some life assurance policies allow for __________, where the policyholder can borrow against the cash value.
loans
Multiple Choice: What is a common feature of term life assurance?
Lower premiums compared to whole life assurance.
What is the typical duration of a term life assurance policy?
5 to 30 years.
True or False: Premiums for whole life assurance generally remain constant throughout the policyholder’s life.
True.
What does ‘renewability’ refer to in a life assurance policy?
The option to renew the policy at the end of its term without re-evaluating health.
Fill in the blank: Life assurance can be an important part of an individual’s overall __________ plan.
financial
Multiple Choice: Which of the following is a potential benefit of life assurance?
Estate planning.
What is ‘accelerated death benefit’ in life assurance?
A feature allowing the policyholder to access a portion of the death benefit while still alive under certain conditions.
True or False: Life assurance policies can be transferred to another person.
True.
Fill in the blank: Adjusting the __________ on a policy can change the premium amount.
coverage amount
What should be reviewed regularly to ensure adequate coverage?
The life assurance policy.
Multiple Choice: Which of the following can impact the cost of life assurance?
Occupation.
What is the purpose of a free-look period in life assurance?
To allow the policyholder to review the policy and cancel for a refund if not satisfied.
True or False: Life assurance premiums can vary widely based on individual circumstances.
True.
