Primerica Life Insurance Exam (Latest Update); Questions and Answers(A+)
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Course
Primerica Insurance
Institution
Primerica Insurance
Primerica Life Insurance Exam (Latest Update);
Questions and Answers(A+)
Risk uncertainty of a financial loss; 2 types
Two typed of risks Pure (Insurable) and speculative (uninsurable)
Benefits of purchasing insurance? You get to transfer financial risk left after
passing to
insurance compan...
Primerica Life Insurance Exam (Latest Update);
Questions and Answers(A+)
Risk ✔✔uncertainty of a financial loss; 2 types
Two typed of risks ✔✔Pure (Insurable) and speculative (uninsurable)
Benefits of purchasing insurance? ✔✔You get to transfer financial risk left after
passing to
insurance company
Law of large numbers ✔✔the larger the size of the group the more accurately
the experience aka
predicted losses of that group can be predicted
Policyowner ✔✔person who owns policy, pays premiums, and chooses the
beneficiary
Insured ✔✔the life of the person the policy covers (could be policyowner)
Insurer ✔✔the insurance company which issues the policy and pays the death
benefit to the
beneficiary upon the death of the insured
Beneficiary ✔✔the person who receives death proceeds
, Primerica Life Insurance Exam (Latest Update);
Questions and Answers(A+)
What does having life insurance create or do? ✔✔Creates an immediate estate
for the beneficiary
which could help pay for daily expenses, mortgage, or college etc
Estate ✔✔the net worth of a person; things you own minus things you owe
Premium ✔✔the amount you pay for coverage aka the money that goes into the
policy; money
policy owner pays to insurer
Proceeds ✔✔the money that is paid out (protection) when the insurer dies;
money insurer pays to
beneficiary upon insureds death
Synonyms/ other names for proceeds ✔✔Coverage
insurance amount
face amount
death benefit
Are the proceeds taxed? ✔✔No, the IRS does not tax them
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