Which of the following statements about the ‘Life Insurance’ section of the lecture material are TRUE:Life insurance policies that bundle a savings product together with death cover in one policy can be a good option for people who would like to make sure that they receive a payout at age 60 whether they live until 80 or die prematurely before the age of 60.Trauma insurance pays a lump-sum amount upon diagnosis of a serious illness, such as cancer. This could be a useful form of insurance if someone has a history of a particular type of cancer in their family.Question 8AnswerNeither of the statements are true (both are false)Only statement 1 is trueOnly statement 2 is trueBoth statements are true (neither are false)

Which of the following statements about the ‘Life Insurance’ section of the lecture material are TRUE:Death cover pays a lump-sum amount upon death. The amount of death cover that most people need should normally increase between the ages of 20 and 60 (with the most needed at age 60).If someone takes out $1 million in ‘Death and TPD cover’, then they will be paid a lump-sum of $1 million upon either death or total and permanent disability. One possible problem with TPD insurance is about the definitions of what constitutes ‘total and permanent disability’.Question 6AnswerNeither of the statements are true (both are false)Only statement 1 is trueOnly statement 2 is trueBoth statements are true (neither are false)

Which of the following statements about the ‘Life Insurance’ section of the lecture material are TRUE:If income protection (or salary continuance) is taken out inside superannuation, it can be cheaper than a similar policy taken outside of superannuation. However, if taken outside of superannuation, the premiums are often tax deductible and there may be less of a problem from losing benefits when transferring between different superannuation funds.Income protection can replace a portion of a person’s income if they have an accident or illness that prevents them from working. After the accident or illness occurs, the person can nominate whether to wait between 14 and 90 days until the benefit starts. They can also decide on a benefit period of between 2 years and all the way until age 65.Question 7AnswerNeither of the statements are true (both are false)Only statement 1 is trueOnly statement 2 is trueBoth statements are true (neither are false)

The-------------- is a life insurance product as well as an investment plan which provides life insurance cover against death of the policy holder along with periodic returns as a percentage of sum assured.       term Insurance       Whole Life Policy       Endowment Plans       Money Back Policy

Whole life insurance has premiums, at first to build up a reserve when the chances of dying are smaller, than does life insurance.

Multiple Choice QuestionWhich policy provides coverage from the beginning of the contract to the maturity date and then pays a specified lump sum regardless of if the person is still living or has died?Multiple choice question.endowment life insurancelump sum insurancereimbursement insurancepay up insurance