FREE FICEP Insurance Planning Questions and Answers
What is the purpose of disability insurance?
Disability insurance provides income replacement if the insured is unable to work due to illness or injury.
Which insurance product is specifically designed to cover expenses related to extended care in a nursing home or at home?
Long-term care insurance covers costs associated with extended care in a nursing home, assisted living facility, or at home.
Which type of insurance provides coverage for property damage and liability in the event of an auto accident?
Auto insurance provides coverage for property damage and liability in the event of an auto accident.
What is an insurance deductible?
A deductible is the amount the policyholder must pay out of pocket before the insurance coverage kicks in.
Why is it important for individuals to review their insurance policies regularly?
Regularly reviewing insurance policies helps ensure that coverage aligns with any changes in an individual's needs and circumstances.
Which type of life insurance policy allows for adjustments to the death benefit and premium payments?
Universal life insurance offers flexibility in adjusting the death benefit and premium payments.
Which type of life insurance policy provides coverage for a specific period?
Term life insurance provides coverage for a specified period, such as 10, 20, or 30 years.
What is the primary purpose of life insurance?
Life insurance primarily provides financial protection to beneficiaries in case of the policyholder's death.
What is a key consideration when determining the amount of life insurance coverage needed?
Determining the amount of life insurance coverage involves considering the beneficiaries' income replacement needs and financial obligations.
What is a key feature of whole life insurance?
Whole life insurance includes fixed premiums and builds cash value over time.
Which type of insurance is designed to cover medical expenses?
Health insurance helps cover the cost of medical expenses such as doctor visits, hospital stays, and prescriptions.