LIFE INSURANCE BASICS
This type of insurance provides financial protection to your loved ones if you pass away
What is life insurance?
The tax-free amount your family receives is called this.
What is the death benefit?
True or False: Life insurance payouts can be taxed if the beneficiary chooses to take the benefit as an annuity rather than a lump sum.
What is TRUE?
A new parent gets life insurance to protect their growing family.
What is a common reason to buy life insurance?
This month is Life Insurance Awareness Month
What is September?
The person who receives the payout from a life insurance policy.
Who is the beneficiary?
Most experts recommend coverage equal to 10–12 times your yearly income.
What is the recommended coverage amount?
True or False: You must wait until you’re completely debt-free before buying life insurance.
What is FALSE?
You buy coverage as a young adult because rates are lower.
What is locking in lower premiums?
You should review your policy every __ years or after a major life change.
What is 1–2?
The amount of money paid monthly or annually to keep your policy active.
What is a premium?
This type of life insurance builds cash value over time.
What is whole life (or permanent) insurance?
True or False: If you develop a serious health condition after buying a policy, your insurer can raise your premium.
What is FALSE?
A homeowner buys life insurance to ensure the mortgage gets paid.
What is debt protection?
40% of people say they’d face financial hardship within this many months if the household breadwinner died.
What is 6 months?
This popular type of policy lasts for a set period, like 10, 20, or 30 years.
What is term life insurance?
The exam many people used to take for life insurance (though many companies now offer no-med options).
What is the medical exam?
True or False: Life insurance companies can deny a claim if the policyholder dies within the contestability period and the application was inaccurate.
What is TRUE?
A business owner buys a policy so their partner can buy out their share if they pass away.
What is a buy-sell agreement?
This many Americans don’t have any life insurance at all.
What is about 1 in 3?
This cost is based on factors like age, health, and lifestyle.
What is your life insurance rate?
This provision lets you get part of your benefits early if you’re diagnosed with a terminal illness.
What is an accelerated death benefit rider?
This common myth leads people to believe they won’t qualify for affordable coverage, even though most applicants do.
What is “Life insurance is too expensive for the average person”?
A senior gets a smaller policy to help cover funeral expenses.
What is final expense insurance?
What percentage of people say they wished they bought life insurance earlier?
What is over 70%