Life Insurance Trivia: Test Your Knowledge
Published on Fri Sep 20 2024 in News
Think you know Life Insurance inside and out? Put your knowledge to the test with this fun Life Insurance trivia quiz.
General Life Insurance
1. True or False? Life insurance can only be purchased by individuals.
2. What is the difference between whole life and term life insurance?
3. Who typically benefits from a life insurance policy?
Life Insurance Built-in Benefits
1. What is a built-in benefit in the context of life insurance?
2. Can you name a common built-in benefit that provides additional coverage for specific life events?
Why have Life Insurance?
1. When is the best time to purchase life insurance?
2. What factors should be considered when determining the amount of life insurance coverage needed?
Answers:
General Life Insurance
1. False. Businesses can also purchase life insurance, often referred to as key person insurance.
2. Whole life insurance provides lifelong coverage with a cash value component, while term life insurance provides coverage for a specific period. In New Zealand, whole life insurance policies are less common.
3. Typically, the beneficiaries of a life insurance policy are the insured person’s loved ones, such as their spouse, children, or parents.
Life Insurance Built-in Benefits
1. Built-in benefits are additional benefits that may be built into your insurance policy. These can vary between insurance companies, so it’s important to check your policy and see what’s included in yours.
2. A common built-in benefit is the accidental death cover, which provides a lump sum payment if the insured dies as a result of an accident.
Why have Life Insurance?
1. Life insurance nearly always coincides with some of life’s biggest milestones—like falling in love, buying a home, having a baby, or starting a business. Why? Because these moments bring new responsibilities. Life’s getting more serious, and you’re stepping up to handle it.
Think of a life insurance policy as a bit of a safety net. It’s there to give you peace of mind, knowing that if something happens to you, your loved ones will be financially taken care of. That means easing any financial stress if your income stops due to injury, illness, or in the worst-case scenario, if you pass away.
2. Factors to consider when determining the amount of life insurance coverage needed include your income, expenses, debts, and the number of dependents.
How did it go, what score did you get? Share this article with your friends and whānau and spread the word about Life Insurance.
The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.
All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.