Question 1

Which of the following is false?

Accepted Answer

A) Stock companies generally sell nonparticipating policies. 
B) A participating policy has a somewhat higher premium than a nonparticipating policy. 
C) Mutual companies generally sell participating policies. 
D) You can expect to receive a policy dividend from a stock company. 
E) Part of the premium is refunded to the policyholder in a participating policy. 
A) Stock companies generally sell nonparticipating policies. 
B) A participating policy has a somewhat higher premium than a nonparticipating policy. 
C) Mutual companies generally sell participating policies. 
D) You can expect to receive a policy dividend from a stock company. 
E) Part of the premium is refunded to the policyholder in a participating policy.

Question 2

The grace period normally allows ________ days to elapse,during which time the premium may be paid on an insurance policy without penalty.

Accepted Answer

A) 11 to 15 
B) 16 to 21 
C) 20 to 25 
D) 28 to 31 
E) 35 to 40 
A) 11 to 15 
B) 16 to 21 
C) 20 to 25 
D) 28 to 31 
E) 35 to 40

Question 3

Fundamentally,group life insurance is ________ insurance.

Accepted Answer

A) term 
B) whole life 
C) ordinary life 
D) permanent 
E) universal life 
A) term 
B) whole life 
C) ordinary life 
D) permanent 
E) universal life

Question 4

Which of the following are common uses of life insurance proceeds?

Accepted Answer

A) Provide an education for children 
B) Set up an estate plan 
C) Establish a regular income for survivors 
D) Accumulate savings 
E) All of these 
A) Provide an education for children 
B) Set up an estate plan 
C) Establish a regular income for survivors 
D) Accumulate savings 
E) All of these

Question 5

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

Accepted Answer

A) Straight 
B) Renewable 
C) Convertible 
D) Decreasing 
E) Return-of-premium 
A) Straight 
B) Renewable 
C) Convertible 
D) Decreasing 
E) Return-of-premium

Question 6

If your death would cause financial stress for your spouse or children,you should consider purchasing life insurance.

Accepted Answer

A) True 
 B)False

Question 7

In a participating policy,a part of the premium is refunded to the policyholder annually.

Accepted Answer

A) True 
 B)False

Question 8

According to a survey by Salary.com,the equivalent wage of a stay-at-home mom is approximately how much?

Accepted Answer

A) $54,000 
B) $75,000 
C) $100,000 
D) $163,000 
E) $175,000 
A) $54,000 
B) $75,000 
C) $100,000 
D) $163,000 
E) $175,000

Question 9

Tim Bridges has a life insurance policy where he makes payments of $325 per year until he reaches the age of 65.His policy is then "paid up" for life.His beneficiaries will receive the face value upon his death.What type of life insurance policy does Tim likely have?

Accepted Answer

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

Question 10

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

Accepted Answer

A) Dow Jones Company. 
B) Standard & Poor's. 
C) Moody's Rating Service. 
D) 
A) M.Best Company. 
E) Weiss Research. 
A) Dow Jones Company. 
B) Standard & Poor's. 
C) Moody's Rating Service. 
D) 
A) M.Best Company. 
E) Weiss Research.

Question 11

Most American families face a substantial loss when one spouse dies unexpectedly.

Accepted Answer

A) True 
 B)False

Question 12

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Accepted Answer

A) True 
 B)False

Question 13

The premium for a whole life insurance policy remains constant:

Accepted Answer

A) throughout your lifetime. 
B) during the first year of the policy. 
C) during the first five years of the policy. 
D) only through age 55. 
E) only through age 69. 
A) throughout your lifetime. 
B) during the first year of the policy. 
C) during the first five years of the policy. 
D) only through age 55. 
E) only through age 69.

Question 14

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Accepted Answer

A) True 
 B)False

Question 15

Subject to certain minimums,which life insurance,first introduced in 1979,has a minimum amount that must be paid to cover the insurance portion?

Accepted Answer

A) Whole life 
B) Ordinary life 
C) Universal life 
D) Adjustable life 
E) Variable life 
A) Whole life 
B) Ordinary life 
C) Universal life 
D) Adjustable life 
E) Variable life

Question 16

Before you buy life insurance,you should determine whether you really need life insurance.

Accepted Answer

A) True 
 B)False

Question 17

Term insurance is a basic,"no frills" form of life insurance and is the best value for most consumers.

Accepted Answer

A) True 
 B)False

Question 18

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Accepted Answer

A) Straight 
B) Renewable 
C) Convertible 
D) Decreasing 
E) Accelerated 
A) Straight 
B) Renewable 
C) Convertible 
D) Decreasing 
E) Accelerated

Question 19

Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation?

Accepted Answer

A) Annual income 
B) Your current employer 
C) Future earnings 
D) Past earnings 
E) Current assets 
A) Annual income 
B) Your current employer 
C) Future earnings 
D) Past earnings 
E) Current assets

Question 20

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

Accepted Answer

A) True 
 B)False

Which of the following is false?

The grace period normally allows ________ days to elapse,during which time the premium may be paid on an insurance policy without penalty.

Fundamentally,group life insurance is ________ insurance.

Which of the following are common uses of life insurance proceeds?

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

If your death would cause financial stress for your spouse or children,you should consider purchasing life insurance.

In a participating policy,a part of the premium is refunded to the policyholder annually.

According to a survey by Salary.com,the equivalent wage of a stay-at-home mom is approximately how much?

Tim Bridges has a life insurance policy where he makes payments of $325 per year until he reaches the age of 65.His policy is then "paid up" for life.His beneficiaries will receive the face value upon his death.What type of life insurance policy does Tim likely have?

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

Most American families face a substantial loss when one spouse dies unexpectedly.

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

The premium for a whole life insurance policy remains constant:

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Subject to certain minimums,which life insurance,first introduced in 1979,has a minimum amount that must be paid to cover the insurance portion?

Before you buy life insurance,you should determine whether you really need life insurance.

Term insurance is a basic,"no frills" form of life insurance and is the best value for most consumers.

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation?

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

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

Which of the following is false?

The grace period normally allows ________ days to elapse,during which time the premium may be paid on an insurance policy without penalty.

Fundamentally,group life insurance is ________ insurance.

Which of the following are common uses of life insurance proceeds?

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

If your death would cause financial stress for your spouse or children,you should consider purchasing life insurance.

In a participating policy,a part of the premium is refunded to the policyholder annually.

According to a survey by Salary.com,the equivalent wage of a stay-at-home mom is approximately how much?

Tim Bridges has a life insurance policy where he makes payments of $325 per year until he reaches the age of 65.His policy is then "paid up" for life.His beneficiaries will receive the face value upon his death.What type of life insurance policy does Tim likely have?

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except:

Most American families face a substantial loss when one spouse dies unexpectedly.

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

The premium for a whole life insurance policy remains constant:

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Subject to certain minimums,which life insurance,first introduced in 1979,has a minimum amount that must be paid to cover the insurance portion?

Before you buy life insurance,you should determine whether you really need life insurance.

Term insurance is a basic,"no frills" form of life insurance and is the best value for most consumers.

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation?

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

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