Life ASSURANCE

Question 1

What is the primary purpose of life assurance cover?

Answer 1

To provide financial protection for your loved ones in the event of your death.

Question 2

True or False: Life assurance cover can help cover debts and ongoing living expenses for beneficiaries.

Answer 2

True

Question 3

Fill in the blank: Life assurance cover is often considered a form of __________.

Answer 3

insurance

Question 4

What are the two main types of life assurance cover?

Answer 4

Term life insurance and whole life insurance.

Question 5

True or False: Whole life insurance provides coverage for a specified term only.

Answer 5

False

Question 6

What does term life insurance provide?

Answer 6

Coverage for a specified period of time.

Question 7

Short answer: What happens if the insured person dies during the term of a term life insurance policy?

Answer 7

The beneficiaries receive the death benefit.

Question 8

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

Answer 8

C) Guaranteed investment returns

Question 9

Fill in the blank: Life assurance cover can be an important part of a person’s __________ plan.

Answer 9

financial

Question 10

True or False: Life assurance cover premiums are typically fixed for the life of the policy.

Answer 10

False

Question 11

What is a death benefit?

Answer 11

The amount paid to beneficiaries upon the death of the insured.

Question 12

Short answer: What factors can affect the cost of life assurance premiums?

Answer 12

Age, health, lifestyle, and coverage amount.

Question 13

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

Answer 13

D) All of the above

Question 14

True or False: Life assurance cover can be used as a savings or investment tool.

Answer 14

True

Question 15

What is ‘underwriting’ in the context of life assurance?

Answer 15

The process of evaluating the risk of insuring an individual.

Question 16

Fill in the blank: The __________ amount is the total amount of coverage provided by the life assurance policy.

Answer 16

coverage

Question 17

What is a premium in life assurance?

Answer 17

The amount paid periodically to maintain the policy.

Question 18

True or False: Life assurance policies can have riders for additional benefits.

Answer 18

True

Question 19

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

Answer 19

C) Both A and B

Question 20

Short answer: What is the purpose of a policy review?

Answer 20

To ensure the coverage meets current needs and circumstances.

Question 21

Fill in the blank: Life assurance cover can provide __________ peace of mind.

Answer 21

financial

Question 22

What can beneficiaries use the death benefit for?

Answer 22

To pay off debts, cover living expenses, and fund education.

Question 23

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

Answer 23

False

Question 24

What is the significance of the ‘contestability period’?

Answer 24

It allows the insurer to investigate claims made within a certain time frame after policy issuance.

Question 25

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

Answer 25

B) It provides a lump-sum payment upon death

Question 26

Short answer: What should you consider when choosing a life assurance policy?

Answer 26

Coverage amount, premium cost, policy terms, and personal needs.

Question 27

Fill in the blank: Life assurance can help ensure financial __________ for family members.

Answer 27

stability

Question 28

True or False: Life assurance cover can be tailored to individual needs.

Answer 28

True

Question 29

What is the role of a beneficiary in life assurance?

Answer 29

To receive the death benefit upon the insured person's death.

Question 30

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

Answer 30

D) All of the above

Question 31

Fill in the blank: The __________ is the individual or entity entitled to receive the death benefit.

Answer 31

beneficiary

Question 32

True or False: Life assurance policies can only be purchased by individuals over 18 years old.

Answer 32

True

Question 33

What is a policyholder?

Answer 33

The individual who owns the life assurance policy.

Question 34

Short answer: Why is it important to disclose health information when applying for life assurance?

Answer 34

To ensure accurate underwriting and avoid claim denials.

Question 35

Multiple choice: Which of the following factors does NOT typically affect life assurance premiums? A) Age B) Gender C) Favorite color D) Health history

Answer 35

C) Favorite color

Question 36

Fill in the blank: The __________ of the policy determines how much the beneficiaries will receive.

Answer 36

coverage amount

Question 37

True or False: Life assurance cover can be canceled at any time without penalty.

Answer 37

False

Question 38

What is a cash value in whole life insurance?

Answer 38

The savings component that accumulates over time in a whole life policy.

Question 39

Short answer: What should you do if your life circumstances change significantly?

Answer 39

Review and possibly update your life assurance policy.

Question 40

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

Answer 40

C) Both A and B

Question 41

Fill in the blank: Life assurance can act as a financial __________ for families after the death of the insured.

Answer 41

safety net

Question 42

True or False: You can have multiple life assurance policies at the same time.

Answer 42

True

Question 43

What is the primary benefit of having life assurance cover?

Answer 43

Providing financial support to loved ones after the policyholder's death.