Many of us get confused about life insurance and the options available.
Worse still, some people are intimidated by the whole subject and don’t even try to get coverage, leaving their loved ones exposed and vulnerable during a tough time.
To help clarify a few life insurance basics we put together this quick quiz. See how you do.
- What is the difference between term and whole life insurance?
- Term insurance only protects you for a defined time period. Whole life covers you for your entire life.
- Term insurance pays out in termed amounts for the life of the policy
- Payments for whole life insurance will eventually be more than the policy is worth
- You can still get coverage at any age, so it’s best to wait until you are older
- What types of things will increase your premium?
- Smoking
- Age
- Gender
- All the above
- Do all insurance policies require you to take a medical exam?
- Yes, you must take an exam for all policies
- No, some policies just ask a few questions
- Term policies need to have a medical exam for coverage
- No, all you must do is pay the premium
- Who can get coverage?
- Anyone, at any age, that meets the requirements
- Individuals over the age of 16 and until the age of 75
- Anyone, over the age of 75
- Only those in perfect health
- What will happen to policy premiums?
- They will always stay the same
- They will go up each year
- They will increase every few years with term policies and stay the same with whole life policies
- They always increase with whole life policies and never with term policies
- Will your policy always stay in force if you pay the premium?
- Whole life policies that are in force will always stay in force
- Term life policies will only stay in force to a certain age
- You can pay term life policy premiums for your whole life and then one day the coverage ends and you won’t be able to get it again.
- All the above
Answers
- a
- d
- b
- a
- c
- d
This quiz covers the basics of life insurance, to get the real answers talk to a qualified agent. The professionals at John B. Wright have the tools and the experience to evaluate your needs and explain your alternatives in simple, plain language. Contact us here to learn more.
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