Exam 9: Life and Health Insurance

Two years ago your doctor told you that you were in the early stages of heart disease. So far, you have not had any related health problems or medical expenses of any kind. Now that you can afford insurance, you have decided to go with Acme Insurance and are filling out the medical history form. Should you put this information on your application?

Policies for people with mental and emotional disorders often require large co-payments or limit the number of annual visits to a psychiatrist or counselor.

One of the reasons insurance is so expensive is due to the expense of developing, testing and verifying new drugs. This cost is passed on to consumers.

Compare and contrast the three basic types of HMOs.

With short-term disability coverage, payments will continue to age 65.

Only a long-term disability policy makes sense, because only it protects against financial catastrophe.

Long-term care insurance may not be a good buy for people under the age of 40.

You are considering the need for insurance. You desire a policy that provides permanent protection, has a fixed premium, and provides a fixed death benefit. What type of policy would you purchase?

A method of determining how much life insurance you require based on funds your family would require to maintain its lifestyle after your death is called the

Actuaries are statisticians who specialize in estimating the probability of death based on personal characteristics, such as your age and general health, as well as lifestyle specifics such as whether or not you exercise.

If you have a good comprehensive health care policy, paying extra for disability income coverage is not a good use of your scarce insurance budget.

Describe the disability insurance features that make sense.

With a PPO, it is much more expensive to go to out of network healthcare providers.

What are some drawbacks of term life insurance?

A guaranteed insurability rider allows you to increase your face value even if your health fails.

The needs approach attempts to determine the amount of funds necessary to meet the needs of a family after the death of the primary breadwinner. Name the seven common family needs.

Health insurance not only pays for your medical bills but also provides you with replacement income while you are unable to work.

Group insurance premiums are generally more expensive than individual policies with the same coverage.

At what point does whole life insurance pay the death benefit?

The needs approach to determining life insurance amounts considers which of the following?