AFIP Insurance Product Knowledge

Question 1

What is the main purpose of term life insurance?

Accepted Answer

Provide coverage for a limited time

Answer

Accumulate cash value

Answer

Invest in mutual funds

Answer

Cover long-term care expenses

Question 2

Which insurance type combines a death benefit with a savings component?

Accepted Answer

Whole life insurance

Answer

Term life insurance

Answer

Disability insurance

Answer

Health insurance

Question 3

What is an annuity primarily used for?

Accepted Answer

Generate retirement income

Answer

Cover funeral expenses

Answer

Provide emergency funds

Answer

Insure health

Question 4

Which insurance covers medical expenses for illness or injury?

Accepted Answer

Health insurance

Answer

Life insurance

Answer

Auto insurance

Answer

Liability insurance

Question 5

What is a deductible in an insurance policy?

Accepted Answer

The amount paid out-of-pocket before insurance kicks in

Answer

Monthly premium

Answer

Policy fee

Answer

Insurance rebate

Question 6

Which type of insurance is required by law for vehicle owners in most states?

Accepted Answer

Auto liability insurance

Answer

Comprehensive insurance

Answer

Collision insurance

Answer

Uninsured motorist insurance

Question 7

What does disability insurance provide?

Accepted Answer

Income replacement due to illness or injury

Answer

Life insurance benefit

Answer

Property repair

Answer

Legal coverage

Question 8

Which product is best suited for estate planning?

Accepted Answer

Universal life insurance

Answer

Accident insurance

Answer

Disability insurance

Answer

Travel insurance

Question 9

What is the cash surrender value of a policy?

Accepted Answer

Cash value available upon policy cancellation

Answer

Annual premium refund

Answer

Loan amount from insurer

Answer

Claim benefit