Question

question 5 (1 point)
list & explain the two types of life insurance

question 6 (1 point)
who receives the payout on a life insurance policy?

Explanation:

Question 5

1. Term Life Insurance: Provides coverage for a specific period (term, e.g., 10, 20, 30 years). If the insured dies during the term, the death benefit is paid to the beneficiary. It has lower premiums as it lacks a cash - value component and is pure protection.
2. Permanent Life Insurance: Offers lifelong coverage. It has a cash - value component that grows over time (e.g., whole life, universal life). Premiums are generally higher, and the cash value can be borrowed against or withdrawn (subject to terms).

The payout (death benefit) of a life insurance policy is received by the beneficiary named in the policy. The policyholder designates one or more beneficiaries (can be individuals, trusts, organizations) who will receive the funds upon the insured's death.

Answer:

1. Term Life Insurance: Coverage for a specific term; lower premiums, no cash value.
2. Permanent Life Insurance: Lifelong coverage; higher premiums, has cash value.

Question 6