Life Insurance Contracts and Terminology Quiz

Play an AI-generated podcast conversation about this lesson

In life insurance, what are the two types of insurance companies mentioned in the text?

Long-term or general insurance companies

Short-term or general insurance companies

Life or short-term insurance companies

Life or long-term insurance companies (correct)

Which aspect differentiates certain cash flows under a policy from others as mentioned in the text?

Certainty of sales expenses

Flat rate increase per annum

Dependence on specific events occurring (correct)

Dependence on the policyholder's age

What term is used to describe an annuity that is guaranteed to increase by 5% per annum?

Inflation-adjusted annuity

Increasing annuity (correct)

Variable annuity

Level premiums annuity

When will a life annuity be paid according to the text?

Only if the policyholder is alive Signup and view all the answers

What characteristic differentiates life insurance from general insurance according to the text?

Cover duration Signup and view all the answers

Which cash flow timing is mentioned to be uncertain in life insurance policies by the text?

Date of death benefit payment Signup and view all the answers

What is the term used for the person who enters into a contract with the insurance company?

Policyholder Signup and view all the answers

What do we call the payments made by the insurer to the policyholder based on specified risk events?

Benefits Signup and view all the answers

In a life insurance policy, who are individuals referred to when benefits are paid to them rather than the policyholder?

Beneficiaries Signup and view all the answers

What is the term for the person who promises to pay certain amounts to the insurer to receive financial protection?

Policyholder Signup and view all the answers

When a policyholder continues to pay premiums and the risk event has not yet happened, what is the status of the policy?

In force Signup and view all the answers

What is the term used for a single payment made to a life insurer in exchange for a regular income during retirement?

Lump sum Signup and view all the answers

What is the term used to refer to payments made under general insurance policies?

Claims Signup and view all the answers

How are short-term insurance contracts typically designed in terms of duration?

Short-term with one-time renewal option Signup and view all the answers

What happens to the premium when a general insurance policy is renewed?

Is reviewed and a revised premium becomes payable Signup and view all the answers

If you want to enjoy cover for your car as long as you have it, why is the option to renew your insurance policy annually beneficial?

Guarantees continuous cover Signup and view all the answers

What term is used to describe movable property in general insurance policies?

Contents Signup and view all the answers

In the context of general insurance, what is the equivalent of 'policyholder' in life insurance?

Premium payer Signup and view all the answers