Life Insurance Quiz - Test your insurance knowledge

Life Insurance Quiz

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Personal Finance Store

Question 1: This insurance provides coverage for a specific period of time, usually from one to 30 years:
Universal Life Insurance
Whole Life Insurance
None of the above
Term Life Insurance

Question 2: The cash surrender value of a permanent life insurance is:
Also called the death benefit.
The amount available in cash upon the policy owner's termination before it becomes payable by death.
The payment to the insurance company for insurance coverage.
A refund of excess premium paid to the owner of an individual participating life insurance policy.

Question 3: Which of the following policies is not a permanent life insurance?
Universal Life Insurance
Variable Life Insurance
Whole Life Insurance
Term Life Insurance

Question 4: Which life insurance insures two individuals in one insurance plan?
Whole Life Insurance
Universal Life Insurance
Survivorship Life Insurance
Term Life Insurance

Question 5: What is the rule of thumb on how much life insurance coverage you need?
Three times your current assets
Five to seven times your annual gross income
Five times your assets
Twice the value of your house

Question 6: In order to determine the rates they charge, insurance companies look at:
Family health history
Potential dangerous hobbies
Smoking/drinking history
All of the above

Question 7: You surrender your life insurance policy, if you:
Decrease the amount of life insurance that you need
Cancel a life insurance policy before the maturity date
Donate the value of the policy to a first degree relative
Donate the cash surrender value of the policy

Press the Submit button to see the results.