Question 1

The DINK method of determining life insurance needs recommends adding an additional insurance cushion if your spouse is:

Accepted Answer

A) healthy. 
B) employed in an occupation with a certain future. 
C) a non-working spouse. 
D) suffering from poor health. 
E) a senior citizen. 
A) healthy. 
B) employed in an occupation with a certain future. 
C) a non-working spouse. 
D) suffering from poor health. 
E) a senior citizen.

Question 2

Which of the following does not refer to permanent insurance?

Accepted Answer

A) Whole life 
B) Straight life 
C) Ordinary life 
D) Cash value life 
E) Term life 
A) Whole life 
B) Straight life 
C) Ordinary life 
D) Cash value life 
E) Term life

Question 3

Which of the following life insurance policies offers the greatest amount of coverage for the lowest initial premium and is a good choice for young families on a tight budget?

Accepted Answer

A) Whole life 
B) Straight life 
C) Ordinary life 
D) Cash value life 
E) Term life 
A) Whole life 
B) Straight life 
C) Ordinary life 
D) Cash value life 
E) Term life

Question 4

What are the two basic types of life insurance? Give examples of each.

Accepted Answer

Answers will vary.The two basic types of

Question 5

Which of the following life insurance policies has a cash value feature?

Accepted Answer

A) Term life 
B) Group life 
C) Credit life 
D) Whole life 
E) Convertible term 
A) Term life 
B) Group life 
C) Credit life 
D) Whole life 
E) Convertible term

Question 6

Your annual income is $45,000.What is your life insurance need based on the easy method?

Accepted Answer

A) $220,500 
B) $315,000 
C) $345,000 
D) $400,000 
E) $450,000 
A) $220,500 
B) $315,000 
C) $345,000 
D) $400,000 
E) $450,000

Question 7

How many different types of life insurance companies are there?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) 5 
A) 1 
B) 2 
C) 3 
D) 4 
E) 5

Question 8

Which of the following questions are important to consider when choosing an insurance agent?

Accepted Answer

A) Is your agent available when needed? 
B) Does your agent advise you to have a financial plan? 
C) Is your agent happy to answer questions? 
D) Does your agent keep up with changes in the insurance field? 
E) All of these 
A) Is your agent available when needed? 
B) Does your agent advise you to have a financial plan? 
C) Is your agent happy to answer questions? 
D) Does your agent keep up with changes in the insurance field? 
E) All of these

Question 9

The guaranteed insurability option is desirable if you anticipate the need for additional life insurance in the future.

Accepted Answer

A) True 
 B)False

Question 10

When choosing life insurance,you should consider:

Accepted Answer

A) the price of the policy. 
B) the financial stability of the insurance company. 
C) the reliability of the insurance company. 
D) the service that the insurance company provides. 
E) All of these 
A) the price of the policy. 
B) the financial stability of the insurance company. 
C) the reliability of the insurance company. 
D) the service that the insurance company provides. 
E) All of these

Question 11

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

Accepted Answer

A) www.lifehexists.com 
B) www.humanlifecalculator.com 
C) www.lifecalculator.com 
D) www.nerdwallet.com/life-insurance 
E) www.familyneeds.com 
A) www.lifehexists.com 
B) www.humanlifecalculator.com 
C) www.lifecalculator.com 
D) www.nerdwallet.com/life-insurance 
E) www.familyneeds.com

Question 12

Insurance experts have estimated that extra costs of up to ________ a year may be required to replace the services of a homemaker in a family with small children.

Accepted Answer

A) $3,000 
B) $6,000 
C) $10,000 
D) $12,000 
E) $15,000 
A) $3,000 
B) $6,000 
C) $10,000 
D) $12,000 
E) $15,000

Question 13

How does life insurance work? What is its purpose and principle?

Accepted Answer

It works in the following manner.A perso

Question 14

Even though it is expensive,you should add the accidental death benefit to your life insurance policy,because your chances of dying in the exact manner stated in the policy are very high.

Accepted Answer

A) True 
 B)False

Question 15

Scott Carson wants to determine his life insurance needs.What method would identify his insurance needs as a range between five and ten times his annual income?

Accepted Answer

A) Multiple of income method 
B) DINK method 
C) Nonworking spouse method 
D) 'Family need' method 
E) Sample method 
A) Multiple of income method 
B) DINK method 
C) Nonworking spouse method 
D) 'Family need' method 
E) Sample method

Question 16

Define rider and describe three riders commonly attached to life insurance policies.

Accepted Answer

Answers will vary.An insurance company c

Question 17

One important feature of a whole life policy is the nonforfeiture clause,which prevents the forfeiture of accrued benefits if you choose to drop the policy.

Accepted Answer

A) True 
 B)False

Question 18

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Accepted Answer

A) True 
 B)False

Question 19

Mutual companies issue only nonparticipating policies.

Accepted Answer

A) True 
 B)False

Question 20

Term insurance continues for the entire term even if you stop paying the premiums.

Accepted Answer

A) True 
 B)False

The DINK method of determining life insurance needs recommends adding an additional insurance cushion if your spouse is:

Which of the following does not refer to permanent insurance?

Which of the following life insurance policies offers the greatest amount of coverage for the lowest initial premium and is a good choice for young families on a tight budget?

What are the two basic types of life insurance? Give examples of each.

Which of the following life insurance policies has a cash value feature?

Your annual income is $45,000.What is your life insurance need based on the easy method?

How many different types of life insurance companies are there?

Which of the following questions are important to consider when choosing an insurance agent?

The guaranteed insurability option is desirable if you anticipate the need for additional life insurance in the future.

When choosing life insurance,you should consider:

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

Insurance experts have estimated that extra costs of up to ________ a year may be required to replace the services of a homemaker in a family with small children.

How does life insurance work? What is its purpose and principle?

Even though it is expensive,you should add the accidental death benefit to your life insurance policy,because your chances of dying in the exact manner stated in the policy are very high.

Scott Carson wants to determine his life insurance needs.What method would identify his insurance needs as a range between five and ten times his annual income?

Define rider and describe three riders commonly attached to life insurance policies.

One important feature of a whole life policy is the nonforfeiture clause,which prevents the forfeiture of accrued benefits if you choose to drop the policy.

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Mutual companies issue only nonparticipating policies.

Term insurance continues for the entire term even if you stop paying the premiums.

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

The DINK method of determining life insurance needs recommends adding an additional insurance cushion if your spouse is:

Which of the following does not refer to permanent insurance?

Which of the following life insurance policies offers the greatest amount of coverage for the lowest initial premium and is a good choice for young families on a tight budget?

What are the two basic types of life insurance? Give examples of each.

Which of the following life insurance policies has a cash value feature?

Your annual income is $45,000.What is your life insurance need based on the easy method?

How many different types of life insurance companies are there?

Which of the following questions are important to consider when choosing an insurance agent?

The guaranteed insurability option is desirable if you anticipate the need for additional life insurance in the future.

When choosing life insurance,you should consider:

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

Insurance experts have estimated that extra costs of up to ________ a year may be required to replace the services of a homemaker in a family with small children.

How does life insurance work? What is its purpose and principle?

Even though it is expensive,you should add the accidental death benefit to your life insurance policy,because your chances of dying in the exact manner stated in the policy are very high.

Scott Carson wants to determine his life insurance needs.What method would identify his insurance needs as a range between five and ten times his annual income?

Define rider and describe three riders commonly attached to life insurance policies.

One important feature of a whole life policy is the nonforfeiture clause,which prevents the forfeiture of accrued benefits if you choose to drop the policy.

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Mutual companies issue only nonparticipating policies.

Term insurance continues for the entire term even if you stop paying the premiums.

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