Life Insurance

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Which of the following is the purpose of life insurance?

To provide financial support to your dependents in case of your unexpected death (correct)

To make your loved ones rich when you die

To help you accumulate wealth during your lifetime

To cover your medical expenses

What is the meaning of 'insurable interest' in relation to life insurance?

Having an interest in buying life insurance

Experiencing financial loss and hardship if the insured person dies (correct)

Having a personal interest in the life insurance industry

Being eligible for life insurance

What factors can affect the rates of a life insurance policy?

Age, gender, and medical history

Driving record and planned travel

Family's medical history and dangerous hobbies

All of the above (correct)

Which type of insurance is typically more affordable and provides the most coverage for the least amount of premium?

Term Insurance Signup and view all the answers

Which type of insurance is used for more unique situations such as high net worth, business owners, and estate planning?

Permanent Insurance Signup and view all the answers

Which type of insurance pays for lost wages if you are unable to work due to injury or illness?

Disability Insurance Signup and view all the answers

What is the benefit amount that would be paid out by a long-term disability contract if the monthly benefit is $3,000, the elimination period is 6 months, and the benefit period is 10 years, and the individual has been disabled for 18 months?

$36,000 Signup and view all the answers

Who is the person or company named in the policy that will receive the death benefit?

Beneficiary Signup and view all the answers

What is the process used to assess eligibility for insurance?

Underwriting Signup and view all the answers

What is the rule of thumb for determining how much life insurance to buy if you are the sole provider?

8-15x income Signup and view all the answers

Which type of insurance is typically more affordable and provides the most coverage for the least amount of premium?

Term Insurance Signup and view all the answers

What is the purpose of long-term care insurance?

To protect older individuals from expenses associated with care in a facility, nursing home, hospice, or received at home Signup and view all the answers

What is the maximum monthly benefit for a disability insurance policy?

$5,000 Signup and view all the answers

What is the formula to calculate the benefit amount for a long-term disability contract?

Benefit = Monthly Benefit x (Benefit Period - Elimination Period) Signup and view all the answers

Life Insurance

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Questions and Answers

Which of the following is the purpose of life insurance?

What is the meaning of 'insurable interest' in relation to life insurance?

What factors can affect the rates of a life insurance policy?

Which type of insurance is typically more affordable and provides the most coverage for the least amount of premium?

Which type of insurance is used for more unique situations such as high net worth, business owners, and estate planning?

Which type of insurance pays for lost wages if you are unable to work due to injury or illness?

What is the benefit amount that would be paid out by a long-term disability contract if the monthly benefit is $3,000, the elimination period is 6 months, and the benefit period is 10 years, and the individual has been disabled for 18 months?

Who is the person or company named in the policy that will receive the death benefit?

What is the process used to assess eligibility for insurance?

What is the rule of thumb for determining how much life insurance to buy if you are the sole provider?

Which type of insurance is typically more affordable and provides the most coverage for the least amount of premium?

What is the purpose of long-term care insurance?

What is the maximum monthly benefit for a disability insurance policy?

What is the formula to calculate the benefit amount for a long-term disability contract?

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