Preview Questions Insurance Advisor | Role Specific Skill

Question 1: What is the key difference between a term life insurance policy and a whole life insurance policy?

Which action should you take?

Choose only one option

Term life provides coverage for a specific period, while whole life offers lifelong coverage and a cash value

Whole life policies only cover the insured for 20 years

Whole life policies have lower premiums than term life policies

Term life policies accumulate cash value over time, while whole life policies do not

Question 2: In advising on short-term vs. long-term disability insurance mixes for a professional practice, which approach ensures the coverage structure aligns with both immediate cash flow needs and long-term income security?

Which action should you take?

Choose only one option

Crafting a combination strategy with a short-term DI to cover early-stage income loss and a long-term DI to secure ongoing income, reviewing elimination periods and benefit durations

Ignoring the interplay between short-term and long-term coverage entirely

Suggesting only long-term DI without bridging the initial income gap

Recommending only short-term DI due to lower initial premiums

Question 3: What type of life insurance policy would be best for a client who wants both lifetime coverage and the opportunity to build cash value?

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Universal life insurance

Term life insurance with a conversion option

Whole life insurance

Variable life insurance

Question 4: Which of the following best describes the coverage provided by a critical illness insurance policy?

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Coverage only for cancer diagnosis and treatment

Coverage for specific types of illness that result in permanent disability

Coverage for long-term illnesses such as cancer, heart disease, and stroke

Coverage for all medical expenses, including hospitalization and treatments

Question 5: How can an advisor ensure that a client's insurance needs analysis is aligned with their future financial goals?

Which action should you take?

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By focusing only on the client's current financial situation

By discussing their future financial goals and adjusting insurance accordingly

By conducting an in-depth assessment of both short- and long-term goals

By using standardized industry formulas for coverage calculations

Question 6: What is covered under a Comprehensive Car Insurance Policy?

Which action should you take?

Choose only one option

Only own vehicle damage

Only third-party liability

Both third-party liability and own damage

Only accidental death