Question 1

Life insurance death benefits are not subject to income taxes.

Accepted Answer

A) True 
 B)False  True

Question 2

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 [lump sum | life income] settlement option is the most commonly selected option.

Accepted Answer

A

Question 3

Because premiums get higher as you age,it is probably advisable for you to buy life insurance at age 20 to save money whether or not you need the insurance then.

Accepted Answer

A) True 
 B)False  False

Question 4

You may reinstate your lapsed life insurance policy without answering health related questions again.

Accepted Answer

A) True 
 B)False

Question 5

Through insurance,society is able to

Accepted Answer

A)  reduce costs. 
B)  increase rewards. 
C)  reduce financial risks and share losses. 
D)  change financial risks and reduce losses. 
E)  anticipate risks. 
A)  reduce costs. 
B)  increase rewards. 
C)  reduce financial risks and share losses. 
D)  change financial risks and reduce losses. 
E)  anticipate risks.

Question 6

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.
-Social Security survivors' benefits typically provide benefits for children through [high school | college].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 7

A life insurance contract contains clauses for

Accepted Answer

A)  settlement options. 
B)  policy reinstatement. 
C)  change of policy. 
D)  all of the above. 
E)  none of the above. 
A)  settlement options. 
B)  policy reinstatement. 
C)  change of policy. 
D)  all of the above. 
E)  none of the above.

Question 8

The purchase of insurance is a common form of which risk management technique:

Accepted Answer

A)  risk retention 
B)  risk transfer 
C)  risk assumption 
D)  risk avoidance 
E)  loss control 
A)  risk retention 
B)  risk transfer 
C)  risk assumption 
D)  risk avoidance 
E)  loss control

Question 9

____ is not a type of term insurance.

Accepted Answer

A)  Limited pay 
B)  Decreasing 
C)  Convertible 
D)  Renewable 
E)  Annual 
A)  Limited pay 
B)  Decreasing 
C)  Convertible 
D)  Renewable 
E)  Annual

Question 10

Universal life insurance is

Accepted Answer

A)  a deferred premium payment policy. 
B)  primarily sold to college students. 
C)  a combined investment plan and insurance policy. 
D)  a provision for a secondary beneficiary. 
E)  all of the above. 
A)  a deferred premium payment policy. 
B)  primarily sold to college students. 
C)  a combined investment plan and insurance policy. 
D)  a provision for a secondary beneficiary. 
E)  all of the above.

Question 11

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least ___ % of the first year's premium and at least ___% of total premiums paid over the life of the policy.

Accepted Answer

A)  20, 5 
B)  50, 10 
C)  75, 25 
D)  100, 20 
E)  200, 50 
A)  20, 5 
B)  50, 10 
C)  75, 25 
D)  100, 20 
E)  200, 50

Question 12

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.
-Living benefits would [increase | decrease] the proceeds available for beneficiaries.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

A waiver of premium benefit excuses premium payment when the insured is unemployed.

Accepted Answer

A) True 
 B)False

Question 14

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

Accepted Answer

A) True 
 B)False

Question 15

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 beneficiary [will | will not] have to pay income taxes on the proceeds from a life insurance policy.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

When a primary beneficiary dies before the insured,proceeds are payable to

Accepted Answer

A)  the state 
B)  the probate court 
C)  the insured's estate 
D)  the contingent beneficiary or beneficiaries 
E)  the insurance company keeps the proceeds 
A)  the state 
B)  the probate court 
C)  the insured's estate 
D)  the contingent beneficiary or beneficiaries 
E)  the insurance company keeps the proceeds

Question 17

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 premium on your term insurance will [increase | stay the same] with each renewal.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

Using the ____ approach is the most accurate method to determine life insurance needs.

Accepted Answer

A)  human life value 
B)  multiple earnings 
C)  risk assessment 
D)  economic identification 
E)  needs 
A)  human life value 
B)  multiple earnings 
C)  risk assessment 
D)  economic identification 
E)  needs

Question 19

The needs approach can determine your life insurance requirements with a single step.

Accepted Answer

A) True 
 B)False

Question 20

Mary Lou died from a heart attack.Her $20,000 policy had a double indemnity clause.Her beneficiary will receive $40,000.

Accepted Answer

A) True 
 B)False

Life insurance death benefits are not subject to income taxes.

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 [lump sum | life income] settlement option is the most commonly selected option.

Because premiums get higher as you age,it is probably advisable for you to buy life insurance at age 20 to save money whether or not you need the insurance then.

You may reinstate your lapsed life insurance policy without answering health related questions again.

Through insurance,society is able to

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. -Social Security survivors' benefits typically provide benefits for children through [high school | college].

A life insurance contract contains clauses for

The purchase of insurance is a common form of which risk management technique:

____ is not a type of term insurance.

Universal life insurance is

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least _ % of the first year's premium and at least _% of total premiums paid over the life of the policy.

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. -Living benefits would [increase | decrease] the proceeds available for beneficiaries.

A waiver of premium benefit excuses premium payment when the insured is unemployed.

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

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 beneficiary [will | will not] have to pay income taxes on the proceeds from a life insurance policy.

When a primary beneficiary dies before the insured,proceeds are payable to

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 premium on your term insurance will [increase | stay the same] with each renewal.

Using the ____ approach is the most accurate method to determine life insurance needs.

The needs approach can determine your life insurance requirements with a single step.

Mary Lou died from a heart attack.Her $20,000 policy had a double indemnity clause.Her beneficiary will receive $40,000.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 8: Insuring Your Life

Life insurance death benefits are not subject to income taxes.

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 [lump sum | life income] settlement option is the most commonly selected option.

Because premiums get higher as you age,it is probably advisable for you to buy life insurance at age 20 to save money whether or not you need the insurance then.

You may reinstate your lapsed life insurance policy without answering health related questions again.

Through insurance,society is able to

A life insurance contract contains clauses for

The purchase of insurance is a common form of which risk management technique:

____ is not a type of term insurance.

Universal life insurance is

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least ___ % of the first year's premium and at least ___% of total premiums paid over the life of the policy.

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. -Living benefits would [increase | decrease] the proceeds available for beneficiaries.

A waiver of premium benefit excuses premium payment when the insured is unemployed.

Guaranteed renewable term insurance allows you to renew the policy for another term without qualifying medically.

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 beneficiary [will | will not] have to pay income taxes on the proceeds from a life insurance policy.

When a primary beneficiary dies before the insured,proceeds are payable to

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 premium on your term insurance will [increase | stay the same] with each renewal.

Using the ____ approach is the most accurate method to determine life insurance needs.

The needs approach can determine your life insurance requirements with a single step.

Mary Lou died from a heart attack.Her $20,000 policy had a double indemnity clause.Her beneficiary will receive $40,000.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least _ % of the first year's premium and at least _% of total premiums paid over the life of the policy.