FREE ExamFX Life and Health Insurance (Combined) Questions and Answers
What is the primary benefit of combining life and health insurance in a single policy?
A combined life and health insurance policy offers comprehensive coverage, providing financial protection for medical expenses during the insured's life and a death benefit for beneficiaries. It is a holistic approach to coverage but does not necessarily guarantee lower premiums or investment growth.
Which of the following is covered under the health portion of a life and health insurance policy?
The health portion of a combined policy typically covers medical expenses such as routine checkups, doctor visits, and preventive care. Funeral expenses and death benefits fall under the life insurance portion, while loss of income due to disability would require separate disability insurance.
What is the main purpose of the waiver of premium rider in a life and health insurance policy?
The waiver of premium rider ensures that the policy remains in force even if the insured becomes disabled and cannot pay premiums. This is a common feature in combined policies for added security.
Which of the following scenarios would trigger the payout of both life and health benefits?
In a combined policy, the health portion might provide benefits for a critical illness diagnosis (e.g., covering treatment costs), while the life portion ensures a death benefit is paid if the insured passes away due to the illness.
What is the primary difference between term life insurance and a combined life and health policy?
Term life insurance offers coverage for a specific time and pays a death benefit only. A combined life and health policy may provide permanent life insurance along with health-related benefits, offering a broader scope of coverage.