FREE Life and Health Insurance Random Questions and Answers

Question 1

Which of the following must be confirmed for an insurance application to change?

Accepted Answer

Change must be initiated by the applicant

Answer

Any alteration or amendment to an insurance application must originate from the applicant themselves. This ensures that the policy accurately reflects the applicant's intentions and information, and protects against unauthorized changes. The applicant's initiation of the change is crucial for maintaining the integrity and validity of the application process.

Question 2

Who receives your death benefit when you pass away?

Accepted Answer

Your Beneficiaries

Answer

The primary purpose of life insurance is to provide financial protection to individuals designated by the policyholder upon their death. These designated individuals are known as beneficiaries. Upon the insured's passing, the insurance company pays the death benefit directly to the named beneficiaries, fulfilling the policy's objective.

Question 3

US citizens who turn 65 are eligible for Medicare, a federal insurance program. John has already started receiving his Social Security retirement benefits, even though he turns 65 in three months. What is required of him for his Medicare coverage to be active?

Accepted Answer

Nothing, as you are automatically enrolled once you reach the age of 65

Answer

Individuals who are already receiving Social Security retirement benefits are automatically enrolled in Medicare Part A (hospital insurance) and Part B (medical insurance) when they turn 65. There is no need to submit a separate application. This automatic enrollment simplifies the process for eligible seniors already engaged with the Social Security system.

Question 4

The IRS permits taxpayers to write off medical expenses that total more than 7.5% of their adjusted gross income. According to this guideline, which of the following is a tax-deductible medical expense?

Accepted Answer

Long Term Care insurance premiums

Answer

The IRS allows certain medical expenses to be deducted, including premiums paid for qualified Long Term Care (LTC) insurance, subject to age-based limits. This is because LTC insurance covers medical and personal care services for chronic illnesses or disabilities. Other types of insurance like travel accidental, individual disability income, or dread disease premiums are generally not considered tax-deductible medical expenses.

Question 5

How much is covered by term life insurance?

Accepted Answer

A couple of years at a time, then it must be renewed

Answer

Term life insurance provides coverage for a specific period, or 'term,' such as 10, 20, or 30 years. Once this term expires, the policy must be renewed if the insured wishes to continue coverage, often at a higher premium due to increased age. It does not cover 'for life' like whole life insurance, nor is it non-renewable after a couple of years.

Life & Health Insurance Exam Practice Test

Life & Health Insurance Exam Practice Test

FREE Life and Health Insurance Random Questions and Answers