Exam 8: Insuring Your Life

Survivorship (last-to-die)insurance is used primarily to help pay settlement cost for the second named insured.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The most popular whole life policy is a [limited payment | straight premium].

Through insurance,society is able to

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -If you have $300 per year available for life insurance,you could get higher life insurance protection with a [continuous | limited payment] policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Social Security survivors' benefits typically provide benefits for children through [high school | college].

Joe died at age 45 leaving a wife (age 36)and two sons (ages 10 and 12).His wife,Maria,is not gainfully employed.Which of the following is true regarding their Social Security benefits assuming Joe was covered by Social Security?

Children's life insurance premiums are less expensive than adult's life insurance premiums.

You may reinstate your lapsed life insurance policy without answering health related questions again.

Which of the following is not characteristic of universal life insurance?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Using the needs approach,we look at the survivors' needs if the income produces dies [tomorrow | before his life expectancy].

The multiple of earnings approach to evaluating life insurance needs is simplistic but can be unreliable.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -A life insurance agent who takes her profession seriously is likely to have earned the [CPCU | CLU] professional certification.

Risk avoidance means asking an insurance company to take over the risk for a small payment (the premium).

The death benefit of ____ life insurance may go down due to poor investment returns.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -If a loss is certain to occur,there is [a | no] risk.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -It [is | is not] possible to avoid most risks in your life.

____ can be both an advantage and a disadvantage of universal life insurance.

Actuarial data is statistical information that enables insurance companies to estimate the risk of loss faced by a population.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Four years after Ralph had purchased life insurance,he committed suicide.His beneficiary [will | will not] be able to collect the face value of this policy due to the incontestability clause.

Avoiding alcoholic beverage while driving is an example of risk reduction.