Exam 9: Life and Health Insurance

Sonny Coltraine was told by a friend that universal life is the best policy. He will find that

Currently only 10% of Americans receive some type of government health care entitlements such as Medicaid or Medicare.

Barry Blair wants to select a good life insurance agent. His dad has had several negative experiences with life insurance agents in the past. What should Barry consider when selecting an agent?

When is convertible term life a good idea?

Alvin Robinson works for the gas company and receives full family health care benefits as part of his compensation package. His health care policy is a major medical policy with a $2,000 family deductible, $25 copay, 80% coinsurance provision and $7,000 stop-loss provision. Alvin's wife, Odessa, works as an office manager for a local company. Her benefits package includes employee only health care coverage. Her company allows employees to "opt out" of the health care benefit for a cash incentive of $250 per month. -Alvin had an emergency gall-bladder operation with major complications. His medical expenses totaled $42,000. Assuming this was the only family medical expense for the year, how much will the Robinson's pay out-of-pocket for this bill?

For which of these situations is life insurance a good idea?

Riley knows her ex-husband would not think about taking out a life insurance policy on himself to protect their two children in the event of his untimely death. As a result, Riles is taking out a policy on him and paying for it herself. That makes Riley the ________ and her children are the ________.

A. M. Best, Standard & Poor's, Moody's, and Duff & Phelps perform a vital service for the insurance industry. What do they do?

Cash-value insurance is any policy that provides both a death benefit and an opportunity to accumulate cash value.

Billy's occupation is a potentially dangerous one - he is a skydiving instructor. His agent pointed out that the monthly premiums will be high. Billy wants a lot of value for his money. He could take advantage of ________ life insurance at this time to save money.