Arizona Life Insurance Exam - Life Insurance
Basics | Questions and answers with 100%
correct solutions | Graded A+
Beneficiary ✔✔A person who receives the benefits of an insurance policy
Death Benefit ✔✔The amount paid upon the death of the insured in a life insurance policy
Cash Value ✔✔Equity amount accumulated in permanent life insurance
Estate ✔✔A person's net worth
Illustrations ✔✔Presentation or depiction of nonguaranteed elements of a life insurance policy
Life Insurance ✔✔Coverage on human lives
Liquidation ✔✔Selling assets in order to raise capital (such as using cash value for capital needs)
Lump-Sum ✔✔Payment of the entire benefit in one sum
Minor ✔✔A person under legal age
, Solvency ✔✔The ability to meet financial obligations (an insurance company maintains enough assets to
pay claims)
Survivor Protection ✔✔Life insurance can provide the funds necessary for the survivors of the insured to
be able to maintain their lifestyle in the event of the insured's death and this is called
________________
Estate Conservation ✔✔Life insurance proceeds may be used to pay inheritance taxes and federal estate
taxes so that it is not necessary for the beneficiaries to sell off the assets which is
___________________
Estate Creation ✔✔The insured will have an estate worth the amount of the life policy upon the first
paid premium which is ______________
Viatical Settlements ✔✔____________________ allows someone living with a life-threatening condition
to sell their existing life insurance policy and use the proceeds when they are most needed, before their
death
Viator ✔✔The insured selling their life insurance in a viatical settlement
Viatical Settlement Provider ✔✔A person, other than a viator, that enters into a viatical settlement
contract (the person buying the life insurance policy)
Viatical Producer ✔✔A person who represents the viatical settlement provider
Basics | Questions and answers with 100%
correct solutions | Graded A+
Beneficiary ✔✔A person who receives the benefits of an insurance policy
Death Benefit ✔✔The amount paid upon the death of the insured in a life insurance policy
Cash Value ✔✔Equity amount accumulated in permanent life insurance
Estate ✔✔A person's net worth
Illustrations ✔✔Presentation or depiction of nonguaranteed elements of a life insurance policy
Life Insurance ✔✔Coverage on human lives
Liquidation ✔✔Selling assets in order to raise capital (such as using cash value for capital needs)
Lump-Sum ✔✔Payment of the entire benefit in one sum
Minor ✔✔A person under legal age
, Solvency ✔✔The ability to meet financial obligations (an insurance company maintains enough assets to
pay claims)
Survivor Protection ✔✔Life insurance can provide the funds necessary for the survivors of the insured to
be able to maintain their lifestyle in the event of the insured's death and this is called
________________
Estate Conservation ✔✔Life insurance proceeds may be used to pay inheritance taxes and federal estate
taxes so that it is not necessary for the beneficiaries to sell off the assets which is
___________________
Estate Creation ✔✔The insured will have an estate worth the amount of the life policy upon the first
paid premium which is ______________
Viatical Settlements ✔✔____________________ allows someone living with a life-threatening condition
to sell their existing life insurance policy and use the proceeds when they are most needed, before their
death
Viator ✔✔The insured selling their life insurance in a viatical settlement
Viatical Settlement Provider ✔✔A person, other than a viator, that enters into a viatical settlement
contract (the person buying the life insurance policy)
Viatical Producer ✔✔A person who represents the viatical settlement provider
