Free FICEP Insurance Planning Questions and Answers 1

Question 1

What is the primary purpose of life insurance?

Accepted Answer

To protect against loss of income due to death

Answer

Life insurance primarily provides financial protection to beneficiaries in case of the policyholder's death.

Question 2

Which type of life insurance policy provides coverage for a specific period?

Accepted Answer

Term life insurance

Answer

Term life insurance provides coverage for a specified period, such as 10, 20, or 30 years.

Question 3

What is a key feature of whole life insurance?

Accepted Answer

Fixed premium payments and a savings component

Answer

Whole life insurance includes fixed premiums and builds cash value over time.

Question 4

Which type of insurance is designed to cover medical expenses?

Accepted Answer

Health insurance

Answer

Health insurance helps cover the cost of medical expenses such as doctor visits, hospital stays, and prescriptions.

Question 5

What is the purpose of disability insurance?

Accepted Answer

To replace a portion of income if the insured becomes unable to work due to illness or injury

Answer

Disability insurance provides income replacement if the insured is unable to work due to illness or injury.

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