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Questions and Answers
Who is the person that receives the money from a life insurance policy?
What is the term for the amount of money a policyholder must pay to keep an insurance policy in force?
What additional benefits can be added to an insurance policy, such as accidental death benefit or disability income?
What is the term for the policyholder's equity in a life insurance contract?
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Which term describes the amount of money the beneficiary receives when the insured dies?
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Study Notes
Life Insurance Terminology
- A Beneficiary is the person who receives the money from the policy when the insured dies.
- The Insured is the person on whose life the policy is written.
- Additional benefits can be added to a policy, such as accidental death benefit or disability income, to provide extra coverage.
- Riders are optional features that can be added to a policy to customize its coverage.
- The Death Benefit is the amount of money the beneficiary receives when the insured dies.
- The Premium is the regular payment made by the policyholder to the insurance company to keep the policy in force.
- A Life Insurance Policy is a contract between the policyholder and the insurance company that outlines the terms and conditions of the coverage.
- Cash Value is the accumulated savings component of a life insurance policy, which grows over time.
- Policyholder's Equity refers to the cash value of a life insurance policy, which represents the policyholder's ownership interest in the policy.
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Description
Test your understanding of life insurance concepts, including beneficiaries, premiums, and death benefits. Learn key terms and riders to make informed decisions about your insurance policy.
