Life Assurance- Product Knowledge Flashcards
(43 cards)
What is life cover?
Life cover is a type of insurance that pays a sum of money to beneficiaries upon the insured person’s death.
True or False: Life cover only provides benefits if the insured dies from natural causes.
False
What are the primary benefits of having life cover?
The primary benefits include financial security for dependents, covering debts, and funeral expenses.
Fill in the blank: Life cover is often referred to as __________ insurance.
death
What factors affect the cost of life cover?
Factors include age, health status, lifestyle, occupation, and the amount of coverage needed.
True or False: Life cover can only be purchased by individuals under 50 years of age.
False
What is the maximum coverage amount typically available for life cover?
The maximum coverage amount varies by provider but can be up to several million dollars.
What is the purpose of a beneficiary in a life cover policy?
The beneficiary is the person or entity designated to receive the death benefit from the policy.
Multiple Choice: Which of the following is NOT a type of life cover? A) Term Life B) Whole Life C) Health Insurance
C) Health Insurance
What is term life insurance?
Term life insurance provides coverage for a specific period, after which the policy expires.
True or False: Whole life insurance includes a savings component.
True
Fill in the blank: Life cover provides peace of mind that your loved ones will be __________ in the event of your death.
financially secure
What is the general process for applying for life cover?
The process typically involves completing an application, providing health information, and possibly undergoing a medical examination.
True or False: Life cover premiums can increase over time.
True
What is a pre-existing condition in the context of life cover?
A pre-existing condition is a health issue that existed before the purchase of the life cover policy.
Multiple Choice: What is a common feature of life cover policies? A) Guaranteed acceptance B) Flexible payment options C) Both A and B
C) Both A and B
What happens to the life cover policy if the insured person stops paying premiums?
The policy may lapse, meaning coverage ends and no benefits will be paid out.
True or False: Life cover can be customized based on individual needs.
True
What is the role of an insurance adviser in obtaining life cover?
An insurance adviser helps individuals understand their options and choose the right life cover for their needs.
Fill in the blank: __________ is an important aspect to consider when choosing life cover.
Affordability
What does ‘underwriting’ refer to in life cover?
Underwriting is the process by which insurers assess risk and determine premium rates for life cover.
True or False: Life cover can be used as collateral for loans.
True
What is a ‘rider’ in the context of life insurance?
A rider is an additional benefit that can be added to a life insurance policy for extra coverage.
Multiple Choice: Which of the following can be a rider? A) Accidental death benefit B) Disability income C) Both A and B
C) Both A and B
