Question 1

The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not characteristic of universal life insurance?

Accepted Answer

A)  flexible premiums 
B)  choice of how the accumulation account is invested 
C)  option A provides a level death benefit 
D)  option B provides a stated amount of insurance plus the accumulated cash value 
E)  the death protection and the savings portion are identified separately 
A)  flexible premiums 
B)  choice of how the accumulation account is invested 
C)  option A provides a level death benefit 
D)  option B provides a stated amount of insurance plus the accumulated cash value 
E)  the death protection and the savings portion are identified separately

Question 3

Universal life insurance is often suitable for single college students since the cost is quite low.

Accepted Answer

A) True 
 B)False

Question 4

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.
-An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

Accepted Answer

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

Question 5

Social security benefits are often available resources to the family after the death of a family member.

Accepted Answer

A) True 
 B)False

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.
-The cash value would build more quickly with a [continuous | limited payment] whole life policy.

Accepted Answer

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

Question 7

Variable life insurance if most often the best plan for most people's primary insurance needs.

Accepted Answer

A) True 
 B)False

Question 8

If a named beneficiary does not survive an insured,the proceeds of the policy revert to the insurance company.

Accepted Answer

A) True 
 B)False

Question 9

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 50% and 100% of the first year's premium.

Accepted Answer

A) True 
 B)False

Question 10

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 20% to 25% of total premiums paid over the life of the policy.

Accepted Answer

A) True 
 B)False

Question 11

Whole life insurance is designed to provide

Accepted Answer

A)  protection only. 
B)  savings only. 
C)  savings and loan value. 
D)  protection and savings. 
E)  loan value only. 
A)  protection only. 
B)  savings only. 
C)  savings and loan value. 
D)  protection and savings. 
E)  loan value only.

Question 12

Which type of settlement option pays for over a predetermined time frame?

Accepted Answer

A)  Lump sum 
B)  Interest only 
C)  Lifetime income 
D)  Fixed period 
E)  Fixed amount 
A)  Lump sum 
B)  Interest only 
C)  Lifetime income 
D)  Fixed period 
E)  Fixed amount

Question 13

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.
-If your insurance policy promises to pay death benefits only if you die during a specified time,you have [term | whole] life insurance.

Accepted Answer

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

Question 14

Avoiding alcoholic beverage while driving is an example of risk reduction.

Accepted Answer

A) True 
 B)False

Question 15

From the standpoint of the person buying insurance,the central purpose of insurance should be:

Accepted Answer

A)  to collect for all accidental losses 
B)  to transfer risks of serious losses 
C)  to support the prevention of losses 
D)  to accumulate savings 
E)  to reduce payments for the most frequently occurring losses 
A)  to collect for all accidental losses 
B)  to transfer risks of serious losses 
C)  to support the prevention of losses 
D)  to accumulate savings 
E)  to reduce payments for the most frequently occurring losses

Question 16

The basic assumptions that the company used to compute its life insurance premiums include all but

Accepted Answer

A)  age 
B)  sex 
C)  health status 
D)  income 
E)  none of the above 
A)  age 
B)  sex 
C)  health status 
D)  income 
E)  none of the above

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.
-Most term insurance [is | is not] renewable.

Accepted Answer

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

Question 18

The settlement option chosen by most beneficiaries is

Accepted Answer

A)  lump sum. 
B)  interest only. 
C)  fixed amount. 
D)  fixed time. 
E)  life income. 
A)  lump sum. 
B)  interest only. 
C)  fixed amount. 
D)  fixed time. 
E)  life income.

Question 19

An insured usually chooses variable life insurance in order to

Accepted Answer

A)  provide more flexible coverage. 
B)  emphasize the savings portion while still having death protection. 
C)  lessen the savings feature of life insurance. 
D)  substitute for fixed-dollar insurance protection. 
E)  reduce insurance premiums. 
A)  provide more flexible coverage. 
B)  emphasize the savings portion while still having death protection. 
C)  lessen the savings feature of life insurance. 
D)  substitute for fixed-dollar insurance protection. 
E)  reduce insurance premiums.

Question 20

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

Accepted Answer

A) True 
 B)False

The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits.

Which of the following is not characteristic of universal life insurance?

Universal life insurance is often suitable for single college students since the cost is quite low.

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. -An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

Social security benefits are often available resources to the family after the death of a family member.

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 cash value would build more quickly with a [continuous | limited payment] whole life policy.

Variable life insurance if most often the best plan for most people's primary insurance needs.

If a named beneficiary does not survive an insured,the proceeds of the policy revert to the insurance company.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 50% and 100% of the first year's premium.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 20% to 25% of total premiums paid over the life of the policy.

Whole life insurance is designed to provide

Which type of settlement option pays for over a predetermined time frame?

Avoiding alcoholic beverage while driving is an example of risk reduction.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

The basic assumptions that the company used to compute its life insurance premiums include all but

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. -Most term insurance [is | is not] renewable.

The settlement option chosen by most beneficiaries is

An insured usually chooses variable life insurance in order to

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

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

The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits.

Which of the following is not characteristic of universal life insurance?

Universal life insurance is often suitable for single college students since the cost is quite low.

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. -An activity that reduces the chance that a loss will occur is [risk shifting | loss prevention].

Social security benefits are often available resources to the family after the death of a family member.

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 cash value would build more quickly with a [continuous | limited payment] whole life policy.

Variable life insurance if most often the best plan for most people's primary insurance needs.

If a named beneficiary does not survive an insured,the proceeds of the policy revert to the insurance company.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 50% and 100% of the first year's premium.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 20% to 25% of total premiums paid over the life of the policy.

Whole life insurance is designed to provide

Which type of settlement option pays for over a predetermined time frame?

Avoiding alcoholic beverage while driving is an example of risk reduction.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

The basic assumptions that the company used to compute its life insurance premiums include all but

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. -Most term insurance [is | is not] renewable.

The settlement option chosen by most beneficiaries is

An insured usually chooses variable life insurance in order to

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

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