Primerica Life Insurance Questions and Answers 100% Pass

Document Content and Description Below

Primerica Life Insurance Questions and Answers 100% Pass Risk ✔✔uncertainty of a financial loss; 2 types Two typed of risks ✔✔Pure (Insurable) and speculative (uninsurable) Benefits of pur... chasing insurance? ✔✔You get to transfer financial risk left after passing to insurance company Law of large numbers ✔✔the larger the size of the group the more accurately the experience aka predicted losses of that group can be predicted Policyowner ✔✔person who owns policy, pays premiums, and chooses the beneficiary Insured ✔✔the life of the person the policy covers (could be policyowner) Insurer ✔✔the insurance company which issues the policy and pays the death benefit to the beneficiary upon the death of the insured Beneficiary ✔✔the person who receives death proceeds What does having life insurance create or do? ✔✔Creates an immediate estate for the beneficiary which could help pay for daily expenses, mortgage, or college etc Estate ✔✔the net worth of a person; things you own minus things you owe Premium ✔✔the amount you pay for coverage aka the money that goes into the policy; money policy owner pays to insurer Proceeds ✔✔the money that is paid out (protection) when the insurer dies; money insurer pays to beneficiary upon insureds death Synonyms/ other names for proceeds ✔✔Coverage [Show More]

Last updated: 1 year ago

Preview 1 out of 13 pages