### What type of payment do beneficiaries receive when the insured dies during the term of a term life insurance policy? - [x] Death benefit - [ ] Cash value - [ ] Dividends - [ ] Annuity payouts > **Explanation:** Beneficiaries receive the death benefit specified in the term life insurance policy upon the death of the insured within the policy term. ### What happens when the insured outlives the term life insurance policy? - [x] The policy expires with no payment - [ ] The beneficiary receives the death benefit - [ ] The insured receives a refund of premiums - [ ] The policy converts to a savings plan > **Explanation:** If the insured outlives the policy term, the term life insurance policy expires, and no benefit is payable. ### Can term life insurance policies include the option to convert to permanent insurance? - [x] Yes, many policies allow conversion - [ ] No, conversion is never allowed - [ ] Only within the first year - [ ] Only at age 65 > **Explanation:** Many term life insurance policies come with a conversion option, allowing the insured to convert the policy to a permanent insurance policy without undergoing a new medical examination. ### Which factor primarily influences the premium cost for term life insurance? - [ ] The color of the insured's house - [ ] The formulation of policy documents - [x] The insured's age and health - [ ] The insurance company's branding > **Explanation:** The primary factors influencing the cost of the premium for term life insurance include the insured's age, health, and lifestyle, as well as the term length and coverage amount. ### What is a 'rider' in the context of term life insurance? - [x] An additional provision for extra benefits - [ ] The base insurance policy - [ ] A type of claim procedure - [ ] Another term for the insurance agent > **Explanation:** A 'rider' is an additional provision that can be attached to an insurance policy to provide extra benefits or options, such as coverage for critical illness or accidental death. ### How often are premiums for term life insurance typically paid? - [ ] Only once - [ ] Biannually - [x] Monthly, quarterly, or annually - [ ] Every two months > **Explanation:** Premiums for term life insurance are typically paid monthly, quarterly, or annually, based on the policyholder’s preference and the terms of the policy. ### If a term life insurance policy includes the return of premium rider, what does this mean? - [x] Premiums paid are refunded at the end of the term - [ ] Risk of loss is minimized - [ ] Premiums are decreased over time - [ ] The beneficiary receives double payment > **Explanation:** With a return of premium rider, the policyholder receives back all paid premiums if they outlive the term of the policy. ### What is an example of a beneficiary? - [ ] The insurance company - [x] The insured’s spouse or children - [ ] The policyholder’s employer - [ ] Financial planner > **Explanation:** A beneficiary is the individual or entity designated in the life insurance policy to receive the death benefit upon the insured’s death, usually the insured's spouse, child, or other family members. ### Why might someone choose a 30-year term life insurance policy? - [x] To cover long-term financial obligations, like a mortgage - [ ] To increase short-term savings - [ ] To ensure higher immediate benefits - [ ] To reduce yearly expenses > **Explanation:** A 30-year term life insurance policy might be chosen to cover long-term obligations such as a mortgage, ensuring that the debt can be paid off if the insured passes away before the term ends. ### What advantage does term life insurance have over permanent life insurance? - [ ] Guaranteed lifelong coverage - [ ] Cash value build-up - [ ] Lower initial premiums - [ ] Investment options > **Explanation:** Term life insurance often has lower initial premiums compared to permanent life insurance, making it a more affordable option for those needing substantial coverage for a fixed period.