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. -[Credit life | Group] insurance is one of the most expensive forms of life insurance.

A guaranteed purchase option is when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary.

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. -Using the needs approach,we look at the survivors' needs if the income producer dies [tomorrow | before his life expectancy].

Underwriting is best described as:

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 insured can borrow from the [cash | face] value of her life insurance policy.

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time,but you feel you will need life insurance for the rest of your life.You should choose ____ insurance.

Underwriting is

Lump-sum distributions of death benefits are generally excluded from federal income tax.

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. -[Level premium | annual renewable] term policies have become much more popular in recent years.

Life insurance policies with small face amounts where the premium may be collected weekly by agents is

An attractive feature of whole life insurance is the availability of loans from the cash value.

Deciding to sell a motorcycle would be an example of risk sharing.

What is it called when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary?

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 you have $300 per year available for life insurance,you could get higher life insurance protection with a [continuous | limited payment] 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. -Smoking [will | will not] be a factor in determining life insurance premiums.

If the objective of your life insurance program is to get the greatest death protection now for your insurance dollars,you should choose ____ insurance.

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. -A [viatical settlement | guaranteed purchase option] is when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary.

Spreading risk among a large number of people is a major principle of insurance.

____ can be both an advantage and a disadvantage of universal life insurance.

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. -Changing the beneficiary on a life insurance policy is generally [easy | difficult] to do.