Types of insurance - SS2 Commerce Past Questions and Answers - page 1
Which type of life assurance provides coverage for the entire lifetime of the insured person?
Whole life insurance
Term life insurance
Endowment insurance
What is the cash value component of whole life insurance?
The amount paid to the beneficiaries upon the insured person's death
The portion of premiums that builds up as a savings component
The sum of money paid out upon reaching the maturity date
The portion of premiums that builds up as a savings component
Which type of life assurance provides a guaranteed sum of money either upon the death of the insured person or at a specific maturity date?
Term life insurance
Whole life insurance
Endowment insurance
When does the maturity benefit of an endowment insurance policy get paid out?
Upon the death of the insured person
At a specific maturity date
At any time during the policy term
Which type of life assurance offers a death benefit and a cash value component?
Endowment insurance
Term life insurance
Whole life insurance
What is the main difference between whole life insurance and endowment insurance?
Whole life insurance provides coverage for the entire lifetime of the insured person and accumulates a cash value, while endowment insurance provides a guaranteed sum of money either upon the insured person's death or at a specific maturity date.
What are the two components of whole life insurance?
The two components of whole life insurance are the death benefit, which is paid out upon the insured person's death, and the cash value component, which accumulates over time as a savings element.