Home > Benefits > Intermediate
Benefits Intermediate: Whole Life Insurance

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
What is the main purpose of life insurance?
Choose wisely. There is only one correct answer.
To provide financial support to your beneficiaries after your death. Life insurance is ultimately meant for your beneficiaries.
2.
Mutual insurance company dividends are taxable.
Choose wisely. There is only one correct answer.
False. Mutual insurance company dividends are a tax-free return of premium.
3.
In a whole life insurance policy, cash value refers to _______.
Choose wisely. There is only one correct answer.
The amount of the policy you will get if you surrender your policy before you die. As opposed to face value, which is what your dependents will get, cash value is what you will get if you should cancel your policy early.
4.
When a mutual insurance company takes in more money than it needs to pay benefits and expenses for a participating policy, it issues _______.
Choose wisely. There is only one correct answer.
Dividends. A mutual insurance company's surplus gets paid back to policy owners in the form of dividends.
5.
You can borrow from your whole life insurance policy, but only for education expenses.
Choose wisely. There is only one correct answer.
False. You can borrow for any reason, even to pay your premiums.