Life Insurance M5 Flashcards
6 cards from real CMFAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Life Insurance M5 flashcards as text
What is the primary purpose of life insurance?
Answer: To provide financial protection to dependents upon the insured's death
The primary purpose of life insurance is to provide financial protection by paying a benefit to the insured's beneficiaries upon death.
What is a term life insurance policy?
Answer: A policy that provides coverage for a specific period only
Term life insurance provides coverage for a fixed period (e.g., 10, 20, or 30 years). If the insured dies during the term, the beneficiary receives the death benefit.
What is a whole life insurance policy?
Answer: A policy that provides lifelong coverage and may accumulate cash value
Whole life insurance provides coverage for the insured's entire lifetime and typically includes a savings component that builds cash value over time.
What is the difference between the policyholder and the insured?
Answer: The policyholder owns the policy; the insured is the person whose life is covered
The policyholder owns the policy and pays premiums. The insured is the person whose life is covered. They can be different people.
What is a premium in life insurance?
Answer: The amount paid periodically to keep the insurance policy in force
A premium is the regular payment (monthly, quarterly, or annually) made by the policyholder to the insurance company to maintain coverage.
What is a beneficiary in a life insurance policy?
Answer: The person designated to receive the death benefit
A beneficiary is the person or entity designated by the policyholder to receive the insurance proceeds upon the insured's death.
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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