Life ASSURANCE Flashcards
What is the primary purpose of life assurance cover?
To provide financial protection for your loved ones in the event of your death.
True or False: Life assurance cover can help cover debts and ongoing living expenses for beneficiaries.
True
Fill in the blank: Life assurance cover is often considered a form of __________.
insurance
What are the two main types of life assurance cover?
Term life insurance and whole life insurance.
True or False: Whole life insurance provides coverage for a specified term only.
False
What does term life insurance provide?
Coverage for a specified period of time.
Short answer: What happens if the insured person dies during the term of a term life insurance policy?
The beneficiaries receive the death benefit.
Multiple choice: Which of the following is NOT a benefit of life assurance cover? A) Financial security for dependents B) Coverage for funeral expenses C) Guaranteed investment returns
C) Guaranteed investment returns
Fill in the blank: Life assurance cover can be an important part of a person’s __________ plan.
financial
True or False: Life assurance cover premiums are typically fixed for the life of the policy.
False
What is a death benefit?
The amount paid to beneficiaries upon the death of the insured.
Short answer: What factors can affect the cost of life assurance premiums?
Age, health, lifestyle, and coverage amount.
Multiple choice: What is the typical duration of a term life insurance policy? A) 1 year B) 10 years C) 30 years D) All of the above
D) All of the above
True or False: Life assurance cover can be used as a savings or investment tool.
True
What is ‘underwriting’ in the context of life assurance?
The process of evaluating the risk of insuring an individual.
Fill in the blank: The __________ amount is the total amount of coverage provided by the life assurance policy.
coverage
What is a premium in life assurance?
The amount paid periodically to maintain the policy.
True or False: Life assurance policies can have riders for additional benefits.
True
Multiple choice: Which of the following is a common rider for life assurance policies? A) Accidental death benefit B) Critical illness cover C) Both A and B
C) Both A and B
Short answer: What is the purpose of a policy review?
To ensure the coverage meets current needs and circumstances.
Fill in the blank: Life assurance cover can provide __________ peace of mind.
financial
What can beneficiaries use the death benefit for?
To pay off debts, cover living expenses, and fund education.
True or False: Life assurance cover is only necessary for individuals with dependents.
False
What is the significance of the ‘contestability period’?
It allows the insurer to investigate claims made within a certain time frame after policy issuance.
Multiple choice: Which of the following statements about life assurance is true? A) It is mandatory for everyone B) It provides a lump-sum payment upon death C) It only covers accidental deaths
B) It provides a lump-sum payment upon death
Short answer: What should you consider when choosing a life assurance policy?
Coverage amount, premium cost, policy terms, and personal needs.
Fill in the blank: Life assurance can help ensure financial __________ for family members.
stability
True or False: Life assurance cover can be tailored to individual needs.
True
What is the role of a beneficiary in life assurance?
To receive the death benefit upon the insured person’s death.
Multiple choice: Which of the following is an example of a life event that might prompt a review of your life assurance policy? A) Getting married B) Changing jobs C) Having a child D) All of the above
D) All of the above
Fill in the blank: The __________ is the individual or entity entitled to receive the death benefit.
beneficiary
True or False: Life assurance policies can only be purchased by individuals over 18 years old.
True
What is a policyholder?
The individual who owns the life assurance policy.
Short answer: Why is it important to disclose health information when applying for life assurance?
To ensure accurate underwriting and avoid claim denials.
Multiple choice: Which of the following factors does NOT typically affect life assurance premiums? A) Age B) Gender C) Favorite color D) Health history
C) Favorite color
Fill in the blank: The __________ of the policy determines how much the beneficiaries will receive.
coverage amount
True or False: Life assurance cover can be canceled at any time without penalty.
False
What is a cash value in whole life insurance?
The savings component that accumulates over time in a whole life policy.
Short answer: What should you do if your life circumstances change significantly?
Review and possibly update your life assurance policy.
Multiple choice: Life assurance cover is generally considered a financial tool for: A) Saving for retirement B) Protecting against loss of income C) Both A and B
C) Both A and B
Fill in the blank: Life assurance can act as a financial __________ for families after the death of the insured.
safety net
True or False: You can have multiple life assurance policies at the same time.
True
What is the primary benefit of having life assurance cover?
Providing financial support to loved ones after the policyholder’s death.
