Question 1

A suicide clause means that the insurance company:

Accepted Answer

A) can cancel the policy if suicide is proven. 
B) will pay a death benefit equal to the amount of the premium paid,if the insured dies by suicide during the first two years that the policy is in force. 
C) will pay only half the death benefits if the insured commits suicide. 
D) automatically pays the premium out of the policy's cash value. 
E) will not pay any death benefits if suicide is suspected. 
A) can cancel the policy if suicide is proven. 
B) will pay a death benefit equal to the amount of the premium paid,if the insured dies by suicide during the first two years that the policy is in force. 
C) will pay only half the death benefits if the insured commits suicide. 
D) automatically pays the premium out of the policy's cash value. 
E) will not pay any death benefits if suicide is suspected.

Question 2

Decreasing term life insurance is no longer available.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a popular app for estimating life insurance needs?

Accepted Answer

A) www.Kiplinger.com/insurance 
B) Human Life Value Calculator 
C) money.msn.com 
D) Today 
E) www.familyneeds.com 
A) www.Kiplinger.com/insurance 
B) Human Life Value Calculator 
C) money.msn.com 
D) Today 
E) www.familyneeds.com

Question 4

A settlement option that provides for payment of the life insurance proceeds in equal periodic installments for a specified number of years after your death is called a:

Accepted Answer

A) flexible annuity. 
B) limited installment payment. 
C) life income option. 
D) lump-sum payment. 
E) proceeds left with the company. 
A) flexible annuity. 
B) limited installment payment. 
C) life income option. 
D) lump-sum payment. 
E) proceeds left with the company.

Question 5

Which type of life insurance policy provides coverage from the beginning of the contract to maturity and guarantees payment of a specified sum to the insured,even if he or she is still living at the end of the contract period?

Accepted Answer

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

Question 6

Consumer awareness of life insurance has changed little over the years.

Accepted Answer

A) True 
 B)False

Question 7

Term insurance is protection for a specified period of time,usually 1,5,10,or 20 years.

Accepted Answer

A) True 
 B)False

Question 8

Using the "nonworking" spouse method,what should be the life insurance need for a family whose youngest child is 12 years old?

Accepted Answer

A) $30,000 
B) $50,000 
C) $60,000 
D) $100,000 
E) $120,000 
A) $30,000 
B) $50,000 
C) $60,000 
D) $100,000 
E) $120,000

Question 9

Which type of insurance is sometimes called temporary life insurance?

Accepted Answer

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

Question 10

The easy method of determining life insurance needs assumes that your family is:

Accepted Answer

A) rich. 
B) poor. 
C) typical. 
D) young. 
E) old. 
A) rich. 
B) poor. 
C) typical. 
D) young. 
E) old.

Question 11

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Accepted Answer

A) True 
 B)False

Question 12

If you have convertible term insurance,you can exchange it for a whole life policy without a medical examination and at a higher premium.

Accepted Answer

A) True 
 B)False

Question 13

The lump-sum payment settlement option is the least used option.

Accepted Answer

A) True 
 B)False

Question 14

What should you consider before you buy life insurance?

Accepted Answer

A) Your past sources of income 
B) Your cost of health insurance 
C) Your vacation benefits 
D) Your accumulated sick leave 
E) Your savings 
A) Your past sources of income 
B) Your cost of health insurance 
C) Your vacation benefits 
D) Your accumulated sick leave 
E) Your savings

Question 15

In the 1950s,the life insurance industry developed:

Accepted Answer

A) the forces of supply and demand. 
B) the insurance division of the federal government. 
C) the forces of competition. 
D) mortality tables. 
E) the principle of life insurance. 
A) the forces of supply and demand. 
B) the insurance division of the federal government. 
C) the forces of competition. 
D) mortality tables. 
E) the principle of life insurance.

Question 16

Using the Multiple of Income Method to estimate life insurance needs,what is the minimum amount of insurance needed for Susan Smith if her annual income is $60,000?

Accepted Answer

A) $60,000 
B) $100,000 
C) $150,000 
D) $200,000 
E) $300,000 
A) $60,000 
B) $100,000 
C) $150,000 
D) $200,000 
E) $300,000

Question 17

To obtain the insurance proceeds from a life insurance policy,who will have to send the policy and a copy of your death certificate to the life insurance company?

Accepted Answer

A) Your doctor 
B) Your family friend 
C) Your beneficiary 
D) Your coworker 
E) Your funeral home 
A) Your doctor 
B) Your family friend 
C) Your beneficiary 
D) Your coworker 
E) Your funeral home

Question 18

The amount of your whole life insurance premium for each $1,000 of coverage depends primarily on the age at which you purchase the insurance.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following offers special features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance that often carry additional fees and charges?

Accepted Answer

A) Whole life insurance 
B) Term life insurance 
C) Modified life insurance 
D) Single-premium insurance 
E) A variable annuity 
A) Whole life insurance 
B) Term life insurance 
C) Modified life insurance 
D) Single-premium insurance 
E) A variable annuity

Question 20

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Accepted Answer

A) True 
 B)False

A suicide clause means that the insurance company:

Decreasing term life insurance is no longer available.

Which of the following is a popular app for estimating life insurance needs?

A settlement option that provides for payment of the life insurance proceeds in equal periodic installments for a specified number of years after your death is called a:

Which type of life insurance policy provides coverage from the beginning of the contract to maturity and guarantees payment of a specified sum to the insured,even if he or she is still living at the end of the contract period?

Consumer awareness of life insurance has changed little over the years.

Term insurance is protection for a specified period of time,usually 1,5,10,or 20 years.

Using the "nonworking" spouse method,what should be the life insurance need for a family whose youngest child is 12 years old?

Which type of insurance is sometimes called temporary life insurance?

The easy method of determining life insurance needs assumes that your family is:

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

If you have convertible term insurance,you can exchange it for a whole life policy without a medical examination and at a higher premium.

The lump-sum payment settlement option is the least used option.

What should you consider before you buy life insurance?

In the 1950s,the life insurance industry developed:

Using the Multiple of Income Method to estimate life insurance needs,what is the minimum amount of insurance needed for Susan Smith if her annual income is $60,000?

To obtain the insurance proceeds from a life insurance policy,who will have to send the policy and a copy of your death certificate to the life insurance company?

The amount of your whole life insurance premium for each $1,000 of coverage depends primarily on the age at which you purchase the insurance.

Which of the following offers special features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance that often carry additional fees and charges?

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

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

Exam 12: Life Insurance

A suicide clause means that the insurance company:

Decreasing term life insurance is no longer available.

Which of the following is a popular app for estimating life insurance needs?

A settlement option that provides for payment of the life insurance proceeds in equal periodic installments for a specified number of years after your death is called a:

Which type of life insurance policy provides coverage from the beginning of the contract to maturity and guarantees payment of a specified sum to the insured,even if he or she is still living at the end of the contract period?

Consumer awareness of life insurance has changed little over the years.

Term insurance is protection for a specified period of time,usually 1,5,10,or 20 years.

Using the "nonworking" spouse method,what should be the life insurance need for a family whose youngest child is 12 years old?

Which type of insurance is sometimes called temporary life insurance?

The easy method of determining life insurance needs assumes that your family is:

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

If you have convertible term insurance,you can exchange it for a whole life policy without a medical examination and at a higher premium.

The lump-sum payment settlement option is the least used option.

What should you consider before you buy life insurance?

In the 1950s,the life insurance industry developed:

Using the Multiple of Income Method to estimate life insurance needs,what is the minimum amount of insurance needed for Susan Smith if her annual income is $60,000?

To obtain the insurance proceeds from a life insurance policy,who will have to send the policy and a copy of your death certificate to the life insurance company?

The amount of your whole life insurance premium for each $1,000 of coverage depends primarily on the age at which you purchase the insurance.

Which of the following offers special features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance that often carry additional fees and charges?

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

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