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.