Traditional Life Mock Exam 1

A type of life insurance that pays a benefit at the end of the policy term if the insured is still alive. It combines death benefit coverage and savings component.

A type of life insurance that provides coverage for a specific period of time. It is typically more affordable than permanent life insurance, but doesn't build cash value.

The application process for a life insurance policy is used to gather information about the applicant's health, habits, and financial situation. This information helps the insurer assess the risk and determine the premiums.

An irrevocable beneficiary is designated in the life insurance policy, and their rights cannot be changed without their consent. This can help safeguard the beneficiary's inheritance.

When the policyholder is incapacitated, an irrevocable beneficiary can be designated without their permission. This is done to protect the insured's financial interests.

An absolute assignee has full ownership rights to a life insurance policy. By appointing their son as an absolute assignee, a father can pass on the policy and avoid estate tax liability.

In the event of the insured's death before the policy term expires, the beneficiary receives the death benefit. It is a valuable guarantee for families to protect their financial security.

The period of coverage for a life insurance policy is the time during which the policy remains in effect. This period can vary depending on the type of policy.

Non-forfeiture options are rights that the policyholder has if they choose to surrender or lapse their policy. These options can be included in the policy documents but are not part of the initial application process.

Whole life insurance policies provide permanent coverage and accumulate cash value. This means that the death benefit is guaranteed for life, and the policyholder can borrow against the cash value.