Exam 13: Life Insurance

During the time the policy is in effect, term life insurance has a good savings and investment component.

All of the following are true of the income method of determining life insurance needs, except it

Use the following two columns of items to answer the matching questions below: -settlement options A)a single payment to the beneficiary B)alternative ways a beneficiary can receive benefits C)Lump-sum, installment payments, and interest payments.

Life insurance would be necessary in all of the following situations, except

The best time to buy a whole life insurance policy in terms of expense is

Life insurance premiums are based on all of the following, except

The job marketability of your spouse

You are the beneficiary of a $200,000 life insurance policy that has both a lump-sum option and an annuity option. The annuity option pays $20,000 per year for a 15-year period beginning at the end of the year. Using your financial calculator or the tables in the book, determine the minimum rate of return you must be assured of earning over the 15-year period if you were to choose the $200,000 lump-sum settlement.

Using the income method and employing a factor of 10, determine the amount of insurance a couple would need if their net income is $65,000, their assets total $280,000, their liabilities total $130,000, their two children's anticipated college education needs total $730,000, and their invalid mother's future nursing home expenses total $290,000.

Which of the following is not an option as a way to use the cash value of your whole life policy?

Which type of life insurance allows policyholders to make their own investment decisions?

The premiums charged on life insurance will be higher if the individual is more likely to ________ in the near future.

If you choose to receive your benefit in the form of equal payments for a certain number of years instead of a lump sum, you elected to receive a(n)

Low cost life insurance, often available without a physical exam, is generally offered by

Which of the following insurance type is strictly intended to provide only insurance in the event of death?

Insurance companies are assigned ratings by all of the following, except

Term insurance provided to a designated group of people with a common bond is called

Life insurance affects everything, except your

Whole life policies are the least expensive way to meet your life insurance needs.

________ insurance is life insurance that is provided over a specified time period and does not build cash value.