Question 1

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

Accepted Answer

A) rider. 
B) waiver of premium. 
C) automatic premium loan. 
D) beneficiary. 
E) incontestability clause. 
A) rider. 
B) waiver of premium. 
C) automatic premium loan. 
D) beneficiary. 
E) incontestability clause. A

Question 2

Two basic types of life insurance are temporary and permanent insurance.

Accepted Answer

A) True 
 B)False  True

Question 3

Your annual income is $32,000.What is your life insurance need based on the easy method?

Accepted Answer

A) $32,000 
B) $96,000 
C) $156,800 
D) $200,000 
E) $224,000 
A) $32,000 
B) $96,000 
C) $156,800 
D) $200,000 
E) $224,000 C

Question 4

A life insurance policy puts a price on the life of the insured person.

Accepted Answer

A) True 
 B)False

Question 5

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

Accepted Answer

A) Ordinary whole life 
B) Limited payment life 
C) Variable life 
D) Adjustable life 
E) Universal life 
A) Ordinary whole life 
B) Limited payment life 
C) Variable life 
D) Adjustable life 
E) Universal life

Question 6

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources.

Accepted Answer

Before buying life insurance,you should

Question 7

A method of evaluating the cost of life insurance by taking into account the time value of money combines all of the following except:

Accepted Answer

A) premium payments. 
B) dividends. 
C) supply and demand. 
D) cash-value buildup. 
E) present value analysis. 
A) premium payments. 
B) dividends. 
C) supply and demand. 
D) cash-value buildup. 
E) present value analysis.

Question 8

Which of the following statements is true about group life insurance?

Accepted Answer

A) Group life has been losing its popularity recently. 
B) The cost of insurance per $1,000 is the same for each employee,regardless of age. 
C) Group insurance is not a good bargain for older employees. 
D) Principles that apply to other forms of insurance do not apply to group life insurance. 
E) Group life is never considered the same thing as term life insurance. 
A) Group life has been losing its popularity recently. 
B) The cost of insurance per $1,000 is the same for each employee,regardless of age. 
C) Group insurance is not a good bargain for older employees. 
D) Principles that apply to other forms of insurance do not apply to group life insurance. 
E) Group life is never considered the same thing as term life insurance.

Question 9

Explain how a guaranteed insurability option works and why it is beneficial.

Accepted Answer

This option allows you to buy specified

Question 10

When choosing an insurance agent,what are some important questions to ask?

Accepted Answer

When selecting an insurance agent,some v

Question 11

Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and daughter.This modification has most likely been done by attaching a(n)________ to the policy.

Accepted Answer

A) accelerated benefits clause 
B) policy dividend 
C) guaranteed insurability clause 
D) second-to-die rider 
E) double indemnity provision 
A) accelerated benefits clause 
B) policy dividend 
C) guaranteed insurability clause 
D) second-to-die rider 
E) double indemnity provision

Question 12

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

Accepted Answer

A) True 
 B)False

Question 13

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Accepted Answer

A) True 
 B)False

Question 14

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Accepted Answer

A) True 
 B)False

Question 15

Which type of life insurance is the least popular and its appeal continues to drop?

Accepted Answer

A) Endowment life insurance 
B) Credit life insurance 
C) Group life insurance 
D) Industrial life insurance 
E) Universal life insurance 
A) Endowment life insurance 
B) Credit life insurance 
C) Group life insurance 
D) Industrial life insurance 
E) Universal life insurance

Question 16

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

Accepted Answer

A) Cash Value 
B) Par 
C) Nonpar 
D) Rider 
E) Double Indemnity 
A) Cash Value 
B) Par 
C) Nonpar 
D) Rider 
E) Double Indemnity

Question 17

With a variable life insurance policy,many people choose to supplement their retirement income by withdrawing some of the investment portion as an annuity to provide regular income.

Accepted Answer

A) True 
 B)False

Question 18

Life insurance proceeds may be used to provide an education or income for children.

Accepted Answer

A) True 
 B)False

Question 19

Life insurance is one of the most important and expensive purchases you may ever make.

Accepted Answer

A) True 
 B)False

Question 20

The easy method of determining life insurance needs is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

Accepted Answer

A) 20 
B) 40 
C) 50 
D) 70 
E) 80 
A) 20 
B) 40 
C) 50 
D) 70 
E) 80

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

Two basic types of life insurance are temporary and permanent insurance.

Your annual income is $32,000.What is your life insurance need based on the easy method?

A life insurance policy puts a price on the life of the insured person.

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources.

A method of evaluating the cost of life insurance by taking into account the time value of money combines all of the following except:

Which of the following statements is true about group life insurance?

Explain how a guaranteed insurability option works and why it is beneficial.

When choosing an insurance agent,what are some important questions to ask?

Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and daughter.This modification has most likely been done by attaching a(n)________ to the policy.

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Which type of life insurance is the least popular and its appeal continues to drop?

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

With a variable life insurance policy,many people choose to supplement their retirement income by withdrawing some of the investment portion as an annuity to provide regular income.

Life insurance proceeds may be used to provide an education or income for children.

Life insurance is one of the most important and expensive purchases you may ever make.

The easy method of determining life insurance needs is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

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Exam 12: Life Insurance

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

Two basic types of life insurance are temporary and permanent insurance.

Your annual income is $32,000.What is your life insurance need based on the easy method?

A life insurance policy puts a price on the life of the insured person.

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources.

A method of evaluating the cost of life insurance by taking into account the time value of money combines all of the following except:

Which of the following statements is true about group life insurance?

Explain how a guaranteed insurability option works and why it is beneficial.

When choosing an insurance agent,what are some important questions to ask?

Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and daughter.This modification has most likely been done by attaching a(n)________ to the policy.

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Which type of life insurance is the least popular and its appeal continues to drop?

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy?

With a variable life insurance policy,many people choose to supplement their retirement income by withdrawing some of the investment portion as an annuity to provide regular income.

Life insurance proceeds may be used to provide an education or income for children.

Life insurance is one of the most important and expensive purchases you may ever make.

The easy method of determining life insurance needs is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters