Life Insurance M5 Flashcards
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Read the first 6 Life Insurance M5 flashcards as text
What is the cash value of a life insurance policy?
Answer: The savings component that accumulates over time in permanent policies
Cash value is the savings portion of a permanent life insurance policy that grows over time. The policyholder can borrow against or withdraw this amount.
What is the grace period in a life insurance policy?
Answer: The period after a premium due date during which the policy remains in force
The grace period is typically 30 days after the premium due date, during which the policyholder can pay the overdue premium without the policy lapsing.
What is an endowment policy?
Answer: A policy that combines life insurance with savings, paying out at maturity or death
An endowment policy combines life insurance protection with a savings element. It pays out the sum assured either at maturity or upon the insured's death, whichever comes first.
What is the contestability period?
Answer: A period (usually 2 years) during which the insurer can void a policy for misrepresentation
During the contestability period (usually the first 2 years), the insurer can investigate and void the policy if the insured made material misrepresentations in the application.
What is a rider in a life insurance policy?
Answer: An additional benefit or provision added to the base policy
A rider is an add-on to a basic insurance policy that provides additional coverage or benefits, such as critical illness or accidental death coverage.
What does 'sum assured' mean?
Answer: The guaranteed amount payable upon death or maturity
The sum assured is the guaranteed minimum amount that the insurer will pay to the beneficiary upon the insured's death or at policy maturity.
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- ibf.org.sg — Eligibility, fees, score release, registration, retake policy, exam format, passing score, time limit · verified Oct 2026