6. 7. 8. The main purpose of life insurance is to: A. make up for loss of earnings if an insured person is unable to ever work again B. pay for urgent medical expenses to save the life of an insured person if that is needed C. meet an insured person's debts and other financial commitments in the event of death D. provide a lump sum if an insured person is diagnosed with a life-threatening illness The best time to apply for life insurance is A today, because you don't know what might happen to you tomorrow B. tomorrow, because you shouldn't do now what you can put off until then C. as soon as you have any dependants, whenever in the future that might be D. as soon as you develop a serious medical condition, so you can be covered for it The main purpose of a financial strength rating provided to a life insurance company is to: A. show how well the company has met its financial obligations in the past B. warn investors how risky the company is to buy shares in C. indicate how competitive the company's insurance premiums are D. provide a measure of the ability of the company to meet its insurance claims If an insured person dies, the person entitled to receive the life insurance benefit is: A. the policy owner, but only if the policy owner is related to the life insured B. the next of kin of the insured person C. the executor of the insured person's will, regardless of who the policy owner is D. the policy owner, regardless of who that person is Today, medical examinations and tests are: A. never required for a life insurance application B. sometimes required for a life insurance application C. usually required for a life insurance application D. always required for a life insurance application "Accounts maintained by retail financial institutions that pay interest but cannot be used directly as money What is the best to explain this statement? A. Bond B. Fixed deposit C. Savings account D. Properties 9. 9. 10. 11