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Test Your Life Insurance IQ

Buying life insurance is one of the most important steps you can take to protect your family's financial future in the event of your death. But how much do you actually know about life insurance?

TEST YOUR LIFE INSURANCE IQ HERE
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What is term life insurance?

A form of life insurance that requires you to meet a set of conditions, such as wearing a heart monitor.

Life insurance that expires after a set amount of time.

Life insurance that you can only get through your job.

A policy that requires periodic health checks to remain in effect.

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Correct answer:

CORRECT!
ALMOST!
The "term" in term life insurance refers to a period of time, or term, that the policy is active for. Term life insurance is a popular option for people with short-term life insurance needs, or for those who want a simple way to supplement existing coverage.
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What is permanent life insurance?

Life insurance that can last for life, as long as you stay current on your payments.

A form of coverage that you can only get when you are young.

Life insurance you are contractually obligated to keep for life.

A policy that covers multiple generations of your family.

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Correct answer:

NAILED IT!
SO CLOSE!
Permanent life insurance (also know as whole life insurance) remains in effect from the date of purchase until the end of your life. As long as you stay current on your payments, permanent life insurance will always be there to protect your family.
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Which of these is a key difference between term and permanent life insurance?

Term life insurance initially has a lower premium than permanent life insurance for the same amount of coverage.

Permanent life insurance builds a cash value that you can borrow against.

Rates for term life insurance generally increase as you age, while permanent life insurance rates remain steady.

All of these are correct.

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Correct answer:

YOU GOT IT!
NOT QUITE!
Knowing the differences between term and permanent life insurance is a key factor in choosing the best option for your needs. Important differences include the amount of coverage you can buy for your budget, how long you'll need the insurance, and whether you'll want the option to borrow against your policy.
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Do you need a medical
exam
to get life insurance?

No. Life insurance companies used to require this, but that was before the Internet.

Yes. A life insurance company must have a medical professional determine if you are healthy before insuring you.

Yes, but the exam is less extensive than it used to be.

It depends. Some life insurance companies and products still require a medical exam, and some base acceptance on health questions and information.

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Correct answer:

YOU'RE RIGHT!
NOT QUITE!
Whether or not an insurance company requires you to get a medical exam to apply for coverage is an important factor to consider when choosing life insurance. Many companies these days offer simplified underwriting, which means that there's no medical exam required, and acceptance is based on health information you provide.
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Which of these are important reasons
to buy life insurance? (Choose all that apply):

Cover funeral costs, medical bills and other end-of-life expenses

Help your spouse cover everyday expenses, such as rent or mortgage costs and utilities.

Help pay off debt left behind after your death

Leave a gift for your children or grandchildren

Supplement existing coverage

SUBMIT »
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Correct answer:

YES!
ALMOST!
The truth is, there are many reasons people buy life insurance, but only you know which ones are important to you. If you have family or other loved ones who might need a financial cushion after you pass away, or if you want to help make sure that final expenses, such as funeral costs are covered, life insurance can be an easy way to protect your peace of mind.
GET MY RESULTS »
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Your Score:

5 out of 5 correct!

Congratulations, you aced this quiz!It looks like you might be ready to start making some key decisions about your family's financial future. Brag about your score to your friends, and then get your free instant quote online.

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Your Score:

out of 5 correct.

Good job! You've shown the potential to master life insurance, and just need to brush up on the finer points. can help you fill in the gaps and prepare you to make key decisions about your family's financial future:

You've got some of the basic facts, but it looks like you still have more to learn. Not to worry; New York Life has you covered. can help you fill in the gaps and prepare you to make key decisions about your family's financial future:

Term Life Insurance
Permanent Life Insurance
Types of Life Insurance: Term vs. Permanent
A Quicker Path to Coverage: Life Insurance With No Medical Exam

How do you stack up against your friends' life insurance knowledge? Challenge them to take the quiz and find out!

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GET MY TERM LIFE QUOTE