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1.
When a mutual insurance company takes in more money than it needs to pay benefits and expenses for a participating policy, it issues _______.
Dividends. A mutual insurance company's surplus gets paid back to policy owners in the form of dividends.
2.
In a whole life insurance policy, part of the premium you pay _______.
Both covers the death benefit and is invested. Your premium goes toward both of these.
3.
As long as you make your premium payments, a permanent life insurance policy will cover you for life.
True. A permanent life insurance policy covers you for life as long as you make your monthly premiums.
4.
In a whole life insurance policy, cash value refers to _______.
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.
5.
A whole life insurance policy can be used to protect your pension in the event of your death.
True. You can use a whole life policy to protect your pension.