Primerica Life Insurance Test Practice Questions

The primary purpose of life insurance is to provide financial protection to beneficiaries in the event of the policyholders death.

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A beneficiary is a person or entity designated to receive the death benefit from a life insurance policy upon the policyholders death.

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Term life insurance provides coverage for a specific period, while whole life insurance provides coverage for the policyholders entire life and includes a savings component.

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A death benefit is the amount of money paid to the beneficiary when the insured person passes away.

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Factors that can affect life insurance premiums include the policyholders age, health, lifestyle, occupation, and the amount of coverage.

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Underwriting is the process by which an insurance company evaluates the risk of insuring an applicant and determines the premium and coverage terms.

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A policyholder is the person who owns the life insurance policy and is responsible for paying the premiums.

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Insurable interest is a financial or emotional stake in the continued life of the insured person, required to purchase a life insurance policy.

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