Arizona Life Insurance Exam - Life Insurance Basics Questions and Answers 100% Pass

Arizona Life Insurance Exam - Life Insurance Basics Questions and Answers 100% Pass Beneficiary - Correct Answer ️️ -A person who receives the benefits of an insurance policy Death Benefit - Correct Answer ️️ -The amount paid upon the death of the insured in a life insurance policy Cash Value - Correct Answer ️️ -Equity amount accumulated in permanent life insurance Estate - Correct Answer ️️ -A person's net worth Illustrations - Correct Answer ️️ -Presentation or depiction of nonguaranteed elements of a life insurance policy Life Insurance - Correct Answer ️️ -Coverage on human lives Liquidation - Correct Answer ️️ -Selling assets in order to raise capital (such as using cash value for capital needs) Lump-Sum - Correct Answer ️️ -Payment of the entire benefit in one sum Minor - Correct Answer ️️ -A person under legal age Solvency - Correct Answer ️️ -The ability to meet financial obligations (an insurance company maintains enough assets to pay claims) Survivor Protection - Correct Answer ️️ -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 - Correct Answer ️️ -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 - Correct Answer ️️ -The insured will have an estate worth the amount of the life policy upon the first paid premium which is ______________ Viatical Settlements - Correct Answer ️️ -____________________ 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 - Correct Answer ️️ -The insured selling their life insurance in a viatical settlement Viatical Settlement Provider - Correct Answer ️️ -A person, other than a viator, that enters into a viatical settlement contract (the person buying the life insurance policy) Viatical Producer - Correct Answer ️️ -A person who represents the viatical settlement provider Viatical Broker - Correct Answer ️️ -A person who represents the viator Life Settlement - Correct Answer ️️ -Any financial transaction in which the owner of a life insurance policy sells a policy that is no longer needed to a third party for some form of compensation, usually cash Uses of Life Insurance - Correct Answer ️️ -1. Survivor Protection 2. Estate Creation and Conservation 3. Liquidity and Cash Accumulation 4. Viatical Settlements and Life Settlements Human Life Value Approach - Correct Answer ️️ -This approach gives the insured an estimate of what would be lost to the family in the event of the premature death of the insured. It calculates an individual's life value by lookin