Life Assurance

Question 1

What is the primary purpose of life assurance cover?

Answer 1

To provide financial support to beneficiaries in the event of the policyholder’s death.

Question 2

True or False: Life assurance cover is only beneficial for individuals with dependents.

Answer 2

False.

Question 3

Fill in the blank: Life assurance cover can help cover __________ expenses.

Answer 3

funeral

Question 4

What are the two main types of life assurance?

Answer 4

Term life assurance and whole life assurance.

Question 5

Multiple Choice: Which of the following is NOT a factor that affects life assurance premiums?

Answer 5

Hair color

Question 6

What is term life assurance?

Answer 6

A policy that provides coverage for a specific period.

Question 7

True or False: Whole life assurance provides coverage for the entire life of the policyholder.

Answer 7

True.

Question 8

What can life assurance cover be used for?

Answer 8

Debt repayment, income replacement, and covering living expenses.

Question 9

Fill in the blank: Premiums for life assurance are generally based on __________ and health status.

Answer 9

age

Question 10

What is a beneficiary in the context of life assurance?

Answer 10

The person or entity designated to receive the payout upon the policyholder’s death.

Question 11

Multiple Choice: Which of the following factors might increase life assurance premiums?

Answer 11

Smoking status

Question 12

Short answer: What is the significance of the waiting period in life assurance policies?

Answer 12

It is the time before the policy benefits become payable.

Question 13

True or False: Life assurance can only be purchased by individuals over the age of 18.

Answer 13

False.

Question 14

What does ‘underwriting’ refer to in life assurance?

Answer 14

The process of evaluating risk and determining premiums.

Question 15

Fill in the blank: Life assurance can provide peace of mind, knowing that __________ will be taken care of.

Answer 15

loved ones

Question 16

Multiple Choice: Which of the following is a potential exclusion in a life assurance policy?

Answer 16

Suicide within the first two years.

Question 17

What is the main difference between life assurance and life insurance?

Answer 17

Life assurance provides coverage for the entire life, while life insurance typically covers a specific term.

Question 18

True or False: The payout from life assurance is usually tax-free for the beneficiaries.

Answer 18

True.

Question 19

What is a ‘rider’ in the context of life assurance?

Answer 19

An additional benefit that can be added to a life assurance policy.

Question 20

Fill in the blank: Life assurance policies typically require a __________ to assess risk.

Answer 20

medical examination

Question 21

Multiple Choice: Which of the following is a common reason for policy cancellation?

Answer 21

Failure to pay premiums.

Question 22

What is ‘cash value’ in a whole life assurance policy?

Answer 22

The savings component that can accumulate over time.

Question 23

True or False: Life assurance policies can be customized with various options.

Answer 23

True.

Question 24

What does ‘level term’ mean in life assurance?

Answer 24

The death benefit remains the same throughout the term.

Question 25

Fill in the blank: Some life assurance policies allow for __________, where the policyholder can borrow against the cash value.

Answer 25

loans

Question 26

Multiple Choice: What is a common feature of term life assurance?

Answer 26

Lower premiums compared to whole life assurance.

Question 27

What is the typical duration of a term life assurance policy?

Answer 27

5 to 30 years.

Question 28

True or False: Premiums for whole life assurance generally remain constant throughout the policyholder's life.

Answer 28

True.

Question 29

What does 'renewability' refer to in a life assurance policy?

Answer 29

The option to renew the policy at the end of its term without re-evaluating health.

Question 30

Fill in the blank: Life assurance can be an important part of an individual's overall __________ plan.

Answer 30

financial

Question 31

Multiple Choice: Which of the following is a potential benefit of life assurance?

Answer 31

Estate planning.

Question 32

What is 'accelerated death benefit' in life assurance?

Answer 32

A feature allowing the policyholder to access a portion of the death benefit while still alive under certain conditions.

Question 33

True or False: Life assurance policies can be transferred to another person.

Answer 33

True.

Question 34

Fill in the blank: Adjusting the __________ on a policy can change the premium amount.

Answer 34

coverage amount

Question 35

What should be reviewed regularly to ensure adequate coverage?

Answer 35

The life assurance policy.

Question 36

Multiple Choice: Which of the following can impact the cost of life assurance?

Answer 36

Occupation.

Question 37

What is the purpose of a free-look period in life assurance?

Answer 37

To allow the policyholder to review the policy and cancel for a refund if not satisfied.

Question 38

True or False: Life assurance premiums can vary widely based on individual circumstances.

Answer 38

True.