Life Insurance: Types and Features
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Questions and Answers

Which type of life insurance typically has a lower premium initially, but increases with each renewal?

  • Whole Life
  • Variable Universal Life
  • Universal Life
  • Term Life (correct)
  • What is a common characteristic of Whole Life insurance?

  • Higher premiums initially (correct)
  • Increasing premiums with each renewal
  • Flexible premiums
  • Variable death benefits
  • Which type of life insurance offers death benefits and potentially a cash and loan value?

  • Universal Life (correct)
  • Variable Life
  • Whole Life
  • Term Life
  • What is an advantage of Term Life insurance?

    <p>Low outlay</p> Signup and view all the answers

    Universal Life insurance is characterized by which of the following?

    <p>Flexible premiums, after a minimum cost of insurance</p> Signup and view all the answers

    What is the purpose of repatriation benefits in the context of insurance?

    <p>To transport the mortal remains of the insured back to their place of residence</p> Signup and view all the answers

    What type of accident would trigger repatriation benefits, according to the text?

    <p>An accident that occurs outside of the city of residence</p> Signup and view all the answers

    Which of the following professions is mentioned in the text as being related to repatriation benefits?

    <p>Police officer</p> Signup and view all the answers

    What is the cost of repatriation benefits in the event of an accident, according to the text?

    <p>The cost is borne by the insurer</p> Signup and view all the answers

    What is the common thread among the professions mentioned in the text?

    <p>They are all related to emergency services</p> Signup and view all the answers

    Under what condition will a household policy not cover a theft claim?

    <p>If there is no evidence of forced and violent entry or exit</p> Signup and view all the answers

    What is excluded from flood coverage under the policy?

    <p>Damage caused by subsidence and landslip</p> Signup and view all the answers

    Which policy is required when purchasing a motor vehicle?

    <p>Motor insurance policy</p> Signup and view all the answers

    Which scenario is often not considered part of household policies?

    <p>Theft without evidence of forced entry</p> Signup and view all the answers

    What type of insurance might you consider when planning an international trip?

    <p>Travel insurance</p> Signup and view all the answers

    What does Third Party cover not insure against?

    <p>Bodily injuries to the vehicle driver</p> Signup and view all the answers

    What is the primary focus of Third Party cover?

    <p>Insuring against claims for third party injuries and property damage</p> Signup and view all the answers

    How does Third Party cover handle property damage?

    <p>It covers loss or damage to third party property caused by your vehicle</p> Signup and view all the answers

    Which of the following accurately describes the individuals protected under Third Party cover?

    <p>Other persons injured or killed due to your vehicle</p> Signup and view all the answers

    Which scenario would not be covered by Third Party cover?

    <p>Your vehicle needing repairs after an accident</p> Signup and view all the answers

    What type of expenses related to travel or accommodation will be reimbursed under curtailment?

    <p>Expenses incurred due to early return</p> Signup and view all the answers

    Which scenario would likely qualify for reimbursement under curtailment?

    <p>Loss of non-refundable deposits on a canceled trip</p> Signup and view all the answers

    Curtailment would NOT cover which of the following expenses?

    <p>Additional nights booked due to itinerary changes</p> Signup and view all the answers

    Which of the following is essential for reimbursement under curtailment?

    <p>Expenses incurred must be due to loss of travel or accommodation</p> Signup and view all the answers

    Which expense example aligns with coverage under curtailment?

    <p>Prepaid, non-refundable hotel bookings</p> Signup and view all the answers

    Study Notes

    Insurance Policies and Coverage

    • Householder policy excludes theft claims without evidence of forced entry or exit.

    Motor Insurance

    • Mandatory for operating a vehicle on public roads.
    • Third Party cover protects against bodily injury or death claims and property damage caused to others by your vehicle.

    Travel Insurance

    • Covers travel-related incidents including curtailment, which reimburses expenses from travel or accommodation losses due to cancellations.

    Natural Disasters Coverage

    • Eruption and flood damages are generally covered, excluding losses from subsidence and landslip.

    Life Insurance Types

    • Term Life Insurance:
      • Premiums are lower initially.
      • Provides coverage for a specified period only.
    • Whole Life Insurance:
      • Higher initial premium that increases with each renewal.
      • Coverage lasts for the insured's entire life if the policy is maintained.
    • Universal Life Insurance:
      • Flexible premiums with a required minimum cost of insurance.
      • Typically does not increase in cost and offers a flexible coverage period.

    Policy Benefits

    • Term Life: Only offers death benefits.
    • Whole Life: Includes death benefits along with potential cash and loan value.
    • Universal Life: Provides death benefits and the possibility of cash and loan value.

    Additional Benefits

    • Repatriation Benefits: Covers transportation costs of the deceased's remains back to their place of residence if an accident occurs outside the home city.
    • Members of armed forces, rescue services, police, and aircraft crew often qualify for specific coverage options.

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    Description

    Learn about the different types of life insurance, including Term Life, Whole Life, and Universal Life, and their features and benefits. This quiz covers the characteristics of each type, including premium costs and policy benefits.

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