Life Insurance (Chapter 1)

Question 1

DISCLAIMER

Answer 1

THANKS FOR JOINING THIS STUDY METHOD!

▼ Read the following for best results.

• All the questions and answers are taken from CISRO’s LLQP Life Insurance exam preparation manual.
• Increase your confidence level in passing your certification and provincial exams by exercising this study method often and frequently!
• The concepts here are simplified with basic definitions, true or false questions and important “need-to-know” key points to prep you in passing your exams.
• For effective results, download the app on your phone, study the chapters in order and aim for 90 - 100% on chapter quizzes and mock exams.
• The reveals (answers) don’t need to be word for word, as long as you understand the main concepts in your own words.
• If this study method has helped you in any way, feel free to share your comments, reviews and suggestions, I’d love to hear them!

———————————————————

• I understand the challenges associated with successfully passing certifications and provincial exams.
• My team and I specifically designed these flashcards to help individuals like you boost their confidence and improve their chances of success.
• With over 750 students currently utilizing our LLQP flashcards, we’ve seen how effective they can be.
• Don’t hesitate in reaching out to get full access to the decks.

Happy studying & good luck!
———————————————————
▼

CONSULTATION + DISCOVERY CALL (FULL ACCESS + MORE)
calendly.com/mannydain/llqplessons

LLQP Testimonials & Results
▼
instagram.com/mannydain

▼ CONTACT INFORMATION
- Email: Contact@MannyDain.com
- Mobile: 437-335-4710 (What’sApp Canada)
- Manny Dain |Financial Educator

Question 2

Life Insurance Terminology

Policyholder

Answer 2

The person who owns the insurance policy

Question 3

Life Insurance Terminology

Life Insured

Answer 3

The person who the life insurance contract is based on (Policyholders can also be the life insured.)

Question 4

Life Insurance Terminology

Beneficiary

Answer 4

The person or entity you name in a life insurance policy to receive the death benefit

Question 5

Life Insurance Terminology

Death Benefit

Answer 5

A payout to the beneficiary of a life insurance policy when the life insured dies.

Question 6

Life Insurance Terminology

Probability of Death

Answer 6

Statistical Probability that a person within a certain group will pass away before their next birthday.

Question 7

Life Insurance Terminology

Mortality Rate

Answer 7

The Probability of dying at a specific age.

Question 8

Life Insurance Terminology

Life Expectancy

Answer 8

Average number of years that a person can expect to live from that age forward.

Question 9

Chapter 1

What is life insurance?

Answer 9

Legal contract between a policyholder and an insurance company where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person in exchange for a premium. It is also known as a risk transfer strategy.

Question 10

Name Two ways to identify the risk of death

Answer 10

• Life expectancy
• Probability rate

Question 11

Potential Financial Impact of Death (6)

Answer 11

1. Loss of Income
2. Loss of Caregiver
3. Debt Repayment
4. Income Taxes
5. Estate Creation (Education funds, Legacies, Charitable Giving)
6. Business Impacts

Question 12

Risk Management Strategies (4)

Answer 12

1. Risk avoidance
2. Risk reduction
3. Risk retention
4. Risk transfer

Question 13

Risk Avoidance

Answer 13

Not exposing oneself to the risk.

Question 14

Risk Reduction

Answer 14

Reducing the possibility or severity of the risk.

Question 15

Risk Retention

Answer 15

Acknowledging and accepting the risk with it’s consequence.

Question 16

Risk Transfer

Answer 16

Finding someone else who is willing to assume the consequence of the risk.