INSURANCE - CH. 3 BASICS OF LIFE INSURANCE
QUIZ WITH VERIFIED ANSWERS [ GRADED A+]
third-party ownership - ✔✔refers to a situation where the owner of a
life insurance policy is someone other than the insured
insurable interest - ✔✔the person applying for the policy must be at
risk of suffering a significant loss if the insured dies
loss may be - ✔✔- emotional, based on love and affection
- economic,
©morren2024/2025.Year published 2024.
, liquidity - ✔✔refers to how easily an asset can be turned into cash
without loss of value
examples of liquid assets - ✔✔bank savings, checking accounts, life
insurance proceeds (are paid in cash)
illiquid assets - ✔✔precious metals, real estate, farms and farming
equipment, small or privately held business interests
living benefits - ✔✔life insurance cash value
life insurance cash value may be used for - ✔✔- emergencies
- opportunities
- education fund for children/grandchildren
©morren2024/2025.Year published 2024.
QUIZ WITH VERIFIED ANSWERS [ GRADED A+]
third-party ownership - ✔✔refers to a situation where the owner of a
life insurance policy is someone other than the insured
insurable interest - ✔✔the person applying for the policy must be at
risk of suffering a significant loss if the insured dies
loss may be - ✔✔- emotional, based on love and affection
- economic,
©morren2024/2025.Year published 2024.
, liquidity - ✔✔refers to how easily an asset can be turned into cash
without loss of value
examples of liquid assets - ✔✔bank savings, checking accounts, life
insurance proceeds (are paid in cash)
illiquid assets - ✔✔precious metals, real estate, farms and farming
equipment, small or privately held business interests
living benefits - ✔✔life insurance cash value
life insurance cash value may be used for - ✔✔- emergencies
- opportunities
- education fund for children/grandchildren
©morren2024/2025.Year published 2024.
