Question 1

Surgical insurance covers the cost of surgery. A surgical policy generally lists which of the following?

Accepted Answer

A)  the specific operations it will cover 
B)  the maximum dollar amount that will be paid for each operation 
C)  the dollar amount that will be paid to the surgeon for the operation 
D)  all of the above 
A)  the specific operations it will cover 
B)  the maximum dollar amount that will be paid for each operation 
C)  the dollar amount that will be paid to the surgeon for the operation 
D)  all of the above

Question 2

Which of the following factors is connected with convertible term life insurance?

Accepted Answer

A)  A medical exam is not required. 
B)  It helps make a smooth transition from term to cash-value insurance. 
C)  There is a corresponding increase in premium cost. 
D)  Generally, the conversion feature is only offered during the first two years. 
E)  all of the above 
A)  A medical exam is not required. 
B)  It helps make a smooth transition from term to cash-value insurance. 
C)  There is a corresponding increase in premium cost. 
D)  Generally, the conversion feature is only offered during the first two years. 
E)  all of the above

Question 3

When firms allow employees to "opt out" regarding health care, employees

Accepted Answer

A)  are offered a cash incentive for electing not to cover their families under the company health plan. 
B)  are not eligible to participate if their spouse has health insurance. 
C)  are only eligible to participate if they are single. 
D)  None of the above. 
A)  are offered a cash incentive for electing not to cover their families under the company health plan. 
B)  are not eligible to participate if their spouse has health insurance. 
C)  are only eligible to participate if they are single. 
D)  None of the above.

Question 4

List five questions you should ask in an attempt to determine life insurance needs.

Accepted Answer

-How long after your death do you want t

Question 5

Medicare part ________ pays for doctor's fees/medical services/supplies, while part ________ pays for hospital insurance benefits.

Accepted Answer

A)  B; A 
B)  A; B 
C)  A; C 
D)  B; C 
E)  none of the above 
A)  B; A 
B)  A; B 
C)  A; C 
D)  B; C 
E)  none of the above

Question 6

Using the earnings multiple approach is determining the present value of an annuity as a means to determine the face value of the insurance policy one needs to purchase.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following does not offer some form of disability insurance?

Accepted Answer

A)  employer benefit package 
B)  individual health policy 
C)  Medicare 
D)  Worker's Comp 
E)  Social Security 
A)  employer benefit package 
B)  individual health policy 
C)  Medicare 
D)  Worker's Comp 
E)  Social Security

Question 8

Hospital insurance is generally part of every insurance plan. It covers the costs associated with a hospital stay including ________.

Accepted Answer

A)  room charges 
B)  nursing costs 
C)  drugs supplied by the hospital 
D)  All of the above are correct. 
E)  Only A and B are correct. 
A)  room charges 
B)  nursing costs 
C)  drugs supplied by the hospital 
D)  All of the above are correct. 
E)  Only A and B are correct.

Question 9

The policy owner must pay the premium during the grace period or they forfeit the policy.

Accepted Answer

A) True 
 B)False

Question 10

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

Accepted Answer

A) True 
 B)False

Question 11

Suppose that you have decided to buy some life insurance. Which method of determining your life insurance needs calculates the annual loss of income stream?

Accepted Answer

A)  needs approach 
B)  earnings multiple approach 
C)  limited term approach 
D)  whole life approach 
A)  needs approach 
B)  earnings multiple approach 
C)  limited term approach 
D)  whole life approach

Question 12

Why do the experts say that paying premiums for accident or dread disease insurance is not a good use of your scarce insurance budget?

Accepted Answer

A)  A comprehensive major medical policy will pay for medical expenses associated with an accident or dread disease like cancer. 
B)  You should instead use your insurance budget to make sure you are adequately insured in all aspects of your life instead of spending your money on insurance of little value. 
C)  Both A and B. 
D)  Neither A nor B. 
A)  A comprehensive major medical policy will pay for medical expenses associated with an accident or dread disease like cancer. 
B)  You should instead use your insurance budget to make sure you are adequately insured in all aspects of your life instead of spending your money on insurance of little value. 
C)  Both A and B. 
D)  Neither A nor B.

Question 13

A universal life insurance policy is a type of cash-value insurance combining term insurance with a tax-deferred savings feature in a package in which both the premiums and the benefits are flexible.

Accepted Answer

A) True 
 B)False

Question 14

Life insurance buying is a new experience for many people. Which of the following is not a basic consideration when determining life insurance needs?

Accepted Answer

A)  whether or not you need life insurance at this time 
B)  the amount of coverage you need now and in the future 
C)  the settlement options. 
D)  the type of life insurance that fits your needs 
E)  shopping around for the best agent and price 
A)  whether or not you need life insurance at this time 
B)  the amount of coverage you need now and in the future 
C)  the settlement options. 
D)  the type of life insurance that fits your needs 
E)  shopping around for the best agent and price

Question 15

An HSA is a good form of health care coverage for young, healthy people who rarely get sick.

Accepted Answer

A) True 
 B)False

Question 16

Provide seven tips on shopping for any health care insurance.

Accepted Answer

1.Enroll in your group plan at work.
2.I

Question 17

What can each of us do in our personal lives to control health care costs?

Accepted Answer

We can stay healthier by adopting and li

Question 18

Which of the following term plans is intended to cover an individual's outstanding debt?

Accepted Answer

A)  renewable term 
B)  reentry term 
C)  credit life 
D)  mortgage life 
E)  both C and D above 
A)  renewable term 
B)  reentry term 
C)  credit life 
D)  mortgage life 
E)  both C and D above

Question 19

Define long-term care insurance and describe its basic features.

Accepted Answer

Long-term care insurance pays for nursin

Question 20

Suppose that you earn $50,000 annually. You expect expenses to drop by 22% for your family in the event of your death. Currently, if you die, you want to provide for your family for at least 15 more years, and the applicable after-tax and inflation return assumed is 5%. Using the earnings multiple approach provided in your textbook, what would be the amount of life insurance that you should purchase?

Accepted Answer

A)  $301,080 
B)  $404,820 
C)  $485,940 
D)  $500,000 
E)  519,000 
A)  $301,080 
B)  $404,820 
C)  $485,940 
D)  $500,000 
E)  519,000

Surgical insurance covers the cost of surgery. A surgical policy generally lists which of the following?

Which of the following factors is connected with convertible term life insurance?

When firms allow employees to "opt out" regarding health care, employees

List five questions you should ask in an attempt to determine life insurance needs.

Medicare part pays for doctor's fees/medical services/supplies, while part pays for hospital insurance benefits.

Using the earnings multiple approach is determining the present value of an annuity as a means to determine the face value of the insurance policy one needs to purchase.

Which of the following does not offer some form of disability insurance?

Hospital insurance is generally part of every insurance plan. It covers the costs associated with a hospital stay including ________.

The policy owner must pay the premium during the grace period or they forfeit the policy.

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

Suppose that you have decided to buy some life insurance. Which method of determining your life insurance needs calculates the annual loss of income stream?

Why do the experts say that paying premiums for accident or dread disease insurance is not a good use of your scarce insurance budget?

A universal life insurance policy is a type of cash-value insurance combining term insurance with a tax-deferred savings feature in a package in which both the premiums and the benefits are flexible.

Life insurance buying is a new experience for many people. Which of the following is not a basic consideration when determining life insurance needs?

An HSA is a good form of health care coverage for young, healthy people who rarely get sick.

Provide seven tips on shopping for any health care insurance.

What can each of us do in our personal lives to control health care costs?

Which of the following term plans is intended to cover an individual's outstanding debt?

Define long-term care insurance and describe its basic features.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 9: Life and Health Insurance

Surgical insurance covers the cost of surgery. A surgical policy generally lists which of the following?

Which of the following factors is connected with convertible term life insurance?

When firms allow employees to "opt out" regarding health care, employees

List five questions you should ask in an attempt to determine life insurance needs.

Medicare part ________ pays for doctor's fees/medical services/supplies, while part ________ pays for hospital insurance benefits.

Using the earnings multiple approach is determining the present value of an annuity as a means to determine the face value of the insurance policy one needs to purchase.

Which of the following does not offer some form of disability insurance?

Hospital insurance is generally part of every insurance plan. It covers the costs associated with a hospital stay including ________.

The policy owner must pay the premium during the grace period or they forfeit the policy.

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

Suppose that you have decided to buy some life insurance. Which method of determining your life insurance needs calculates the annual loss of income stream?

Why do the experts say that paying premiums for accident or dread disease insurance is not a good use of your scarce insurance budget?

A universal life insurance policy is a type of cash-value insurance combining term insurance with a tax-deferred savings feature in a package in which both the premiums and the benefits are flexible.

Life insurance buying is a new experience for many people. Which of the following is not a basic consideration when determining life insurance needs?

An HSA is a good form of health care coverage for young, healthy people who rarely get sick.

Provide seven tips on shopping for any health care insurance.

What can each of us do in our personal lives to control health care costs?

Which of the following term plans is intended to cover an individual's outstanding debt?

Define long-term care insurance and describe its basic features.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Medicare part pays for doctor's fees/medical services/supplies, while part pays for hospital insurance benefits.