Delaware Life Insurance Company Questions and Answers 2024

Delaware Life Insurance Company Questions and Answers 2024 Insurance Policy - CORRECT ANSWER-A contract between a policyowner (and/or insured) and an insurance company which agrees to pay the insured or the beneficiary for loss caused by specific events Insured - CORRECT ANSWER-Person covered by the insurance policy; may or may not be the policyowner Insurer (Principal) - CORRECT ANSWER-The company who issues an insurance policy Lapse - CORRECT ANSWER-Policy termination due to nonpayment of premium Premium - CORRECT ANSWER-The money paid to the insurance company for the insurance policy What is insurance? - CORRECT ANSWER-A contract in which one party (the insurance company) agrees to indemnify/compensate/make whole the insured party against loss, damage, or liability arising from an unknown event. In life insurance, the policy protects what? - CORRECT ANSWER-Survivors from losses suffered after an insured's death. Insurance transfers what? - CORRECT ANSWER-The risk of loss from an individual or a business entity to an insurance company. That then spreads the cost of unexpected losses to many individuals. If there was no life insurance mechanism, who would have to bear the cost of a loss? - CORRECT ANSWER-The individual who suffered the loss. Life insurance protects against what? - CORRECT ANSWER-Financial loss associated with an insured's death. This is done by paying the death benefit to the beneficiaries following the death of the insured. What does the policyowner of the insurance contract pay to the insurer? - CORRECT ANSWER-A premium. What does the insurer issue to the insured? - CORRECT ANSWER-A policy. In the event of the insured's death, what does the insurer pay? - CORRECT ANSWERThe death benefit to the beneficiary.