Define financial protection.
Measures taken to safeguard against financial loss or risk.
What is the purpose of insurance?
To provide financial compensation for losses or damages.
True or false: Life insurance is a form of financial protection.
TRUE
Fill in the blank: Critical illness insurance covers _______ that significantly impact health.
serious medical conditions
What does income protection insurance provide?
It replaces lost income due to illness or injury.
Define term life insurance.
A policy that provides coverage for a specified period.
What is whole life insurance?
A permanent policy providing coverage for the insured’s lifetime.
True or false: Endowment policies combine life cover with savings.
TRUE
Fill in the blank: Permanent insurance lasts for _______.
the insured’s lifetime
What is the role of a beneficiary in insurance?
The person designated to receive the insurance payout.
Define underwriting.
The process of evaluating risk and determining policy terms.
What is a premium?
The amount paid for an insurance policy.
True or false: Deductibles are amounts paid before insurance coverage kicks in.
TRUE
Fill in the blank: Exclusions are _______ not covered by an insurance policy.
specific risks or events
What does claims processing involve?
The steps taken to evaluate and pay out insurance claims.
Define group insurance.
Coverage provided to a group, often through an employer.
What is accidental death insurance?
A policy that pays out if the insured dies due to an accident.
True or false: Universal life insurance allows flexible premiums.
TRUE
Fill in the blank: Long-term care insurance helps cover _______ services.
extended care needs
What is the insurable interest requirement?
The policyholder must have a legitimate interest in the insured’s life.
Define riders in insurance.
Add-ons to a policy that provide additional benefits.
What is whole life insurance’s cash value?
The savings component that grows over time.
True or false: Insurance fraud is illegal and punishable by law.
TRUE
Fill in the blank: Premiums are typically paid _______.
monthly or annually
