Exam 8: Insuring Your Life

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 most accurate way to determine how much life insurance you need is to use the [multiple earnings | needs] approach.

(Short Answer)

4.9/5

(78)

Question 61

The underwriting function is designed to be sure that premiums are based on

(Multiple Choice)

4.9/5

(88)

Question 62

The best way to handle risk is to

(Multiple Choice)

4.9/5

(67)

Question 63

Credit life insurance is often a legal requirement when you buy something on credit.

(True/False)

4.9/5

(81)

Question 64

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

(True/False)

4.8/5

(72)

Question 65

Life insurance cash value may be collected by terminating the policy.

(True/False)

4.9/5

(83)

Question 66

The least expensive form of whole life insurance protection is

(Multiple Choice)

4.9/5

(73)

Question 67

Policy dividends paid on participating policies are a return of unused premium based upon the claims experience of the mutual insurance company.

(True/False)

5.0/5

(68)

Question 68

Generally,the primary purpose of life insurance is to provide a tax-advantaged investment plan.

(True/False)

4.8/5

(88)

Question 69

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. -With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least [25% | 100%] of the first year's premium.

(Short Answer)

4.8/5

(76)

Question 70

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

(Multiple Choice)

4.8/5

(76)

Question 71

Whole life policies typically provide a high investment rate of return.

(True/False)

4.8/5

(65)

Question 72

In determining available resources to offset economic needs,you would generally not consider

(Multiple Choice)

5.0/5

(68)

Question 73

The return on term life insurance policies receive favorable tax treatment.

(True/False)

4.8/5

(88)

Question 74

The three major categories of life insurance are term,straight life,and limited payment.

(True/False)

4.8/5

(76)

Question 75

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. -People share losses through [loss control | insurance].

(Short Answer)

4.8/5

(84)

Question 76

A participating policy

(Multiple Choice)

4.9/5

(85)

Question 77

Multiple indemnity policies should be ignored as a source of funds when determining insurance needs because it offers no protection if the insured's death is due to natural causes.

(True/False)

4.9/5

(86)

Question 78

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

(True/False)

4.8/5

(84)

Question 79

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed is:

(Multiple Choice)

4.8/5

(83)

Question 80

Showing 61 - 80 of 157

The underwriting function is designed to be sure that premiums are based on

The best way to handle risk is to

Credit life insurance is often a legal requirement when you buy something on credit.

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

Life insurance cash value may be collected by terminating the policy.

The least expensive form of whole life insurance protection is

Policy dividends paid on participating policies are a return of unused premium based upon the claims experience of the mutual insurance company.

Generally,the primary purpose of life insurance is to provide a tax-advantaged investment plan.

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

Whole life policies typically provide a high investment rate of return.

In determining available resources to offset economic needs,you would generally not consider

The return on term life insurance policies receive favorable tax treatment.

The three major categories of life insurance are term,straight life,and limited payment.

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. -People share losses through [loss control | insurance].

A participating policy

Multiple indemnity policies should be ignored as a source of funds when determining insurance needs because it offers no protection if the insured's death is due to natural causes.

It is probably advisable to purchase life insurance from a company that has been in business for at least 25 years.

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed is:

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