Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
If you reapply for a term life insurance policy whose coverage has expired, you are guaranteed the same premium you paid before.
False. Typically, you will pay more, and you may have to meet stricter requirements, too.
2.
The death benefit from term life insurance can be used for expenses such as _______.
All of the above. Benefits can be used for these expenses and more.
3.
If you buy a term life insurance policy and invest the money that you would have otherwise spent on a whole life policy, who takes on the risk of this approach?
You. You must take on the investment risk yourself. But with a whole life policy, the insurance company takes on the investment risk.
4.
Which of the following scenarios describes how premiums typically behave in a term life insurance policy?
Premiums rise as you age. Premiums rise due to the probability of your death increasing as you grow older.
5.
The coverage period for annual renewable term life insurance goes _______.
Either for a certain number of years or up to a certain age. Coverage could be either of these, depending on how the policy is written.