CII Certificate in Insurance - Financial Protection (R05) Practice Exam 2025 - Free Insurance Certificate Practice Questions and Study Guide

Question: 1 / 400

What is a key consideration when choosing life insurance?

The promotional advertising from different providers

The simplicity of understanding the policy

The adequacy of coverage for specific dependents’ needs

A key consideration when choosing life insurance is the adequacy of coverage for specific dependents' needs. This aspect emphasizes the primary purpose of life insurance, which is to provide financial protection to beneficiaries in the event of the policyholder's death. Understanding the specific needs of dependents—such as outstanding debts, future educational expenses, and daily living costs—ensures that the chosen coverage amount is sufficient to support them without compromising their financial stability.

While factors like promotional advertising, simplicity of the policy, and online purchasing options are helpful, they do not directly address the fundamental reason for acquiring life insurance. The focus should always be on how the policy will effectively provide for any loved ones left behind, making this consideration the most crucial in selecting a life insurance plan.

Get further explanation with Examzify DeepDiveBeta

The availability of online purchase options

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy