Exam 8: Insuring Your Life

Nonforfeiture rights guarantee that a policy owner will not lose his or her ____.

____ and ____ are both relatively expensive types of decreasing-term life insurance.

Credit life insurance is often a legal requirement when you buy something on credit.

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. -When Dick bought life insurance 40 years ago,he told the insurance company he was 25 when he was really 30.He just died.The insurance company [can | cannot] use the "lie' to adjust the face value of the policy.

Social security benefits are often available resources to the family after the death of a family member.

Peril is uncertainty regarding economic loss.

Life insurance policies with small face amounts where the premium may be collected weekly by agents is

Policy dividends paid on participating policies are a return of unused premium based upon the claims experience of the mutual insurance company.

Life insurance policy loans are generally not taxable in the year taken and not deductible in the year repaid.

Cash value will not be forfeited to the insurance company for non-payment of a premium,but will instead always accrue to the benefit of the policy owner.

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

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. -[Credit life | Group] insurance is one of the most expensive forms of 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. -The life insurance policy that clearly separates the protection and savings elements is [whole life | universal life].

Rodney and Toni are a young couple with two small children.They are doing well financially but their life insurance needs are high and their budget is tight.What type of life insurance will give them the most protection for their money?