The Life Insurance Basics Quiz

Life insurance provides a lump-sum death benefit to the policyholder's beneficiaries. (correct)

Life insurance only pays out if the policyholder passes away within a specific amount of time.

Life insurance is a contract in which a policyholder pays premiums in exchange for a monthly income.

Life insurance is a contract in which a policyholder pays premiums in exchange for a lump-sum benefit that can be used during their lifetime.

Paying off outstanding debt.

Replacing lost income and covering expenses. (correct)

Investing in stocks and bonds.

Providing monthly income to the policyholder.

Knowing the amount of outstanding debt left on things such as mortgages and loans. (correct)

Knowing the policyholder's investment portfolio.

Knowing the policyholder's credit score.

Knowing the policyholder's monthly income.