Exam 9: Life and Health Insurance

James is employed by the university. Yesterday he fell outside of his office due to water on the floor. He broke his leg in two places. What type of health care plan will cover James' expenses?

With decreasing term insurance, each time the term insurance is renewed the premium decreases.

Using the earnings multiple approach calculate how much life insurance Heather and Robert need to take out on Heather. She earns $80,000 and is 37 years old. They want coverage until she retires at age 67. Robert is sure he can get an annual rate of return on the policy settlement of 8%. They have no children.

What are the risks associated with term insurance policies?

What is the name of the insurance policy that pays your beneficiary a specific amount of money if you die while covered by the policy, and this coverage is for a set number of years and must be renewed when it expires?

Sally Heath has the option of obtaining life insurance through her place of employment. She will not need to take a physical exam. This type of policy would be a/an ________ policy.

Octavio is 30 years old and earns an annual salary of $55,000. His wife wants to take out a life insurance policy on him until he turns 67. Using the earnings multiple approach, how large should the face value of his insurance policy be--assuming his wife can earn an annual rate of return of 8.5% on his life insurance pay off?

Genevieve's husband died from lung cancer. As a result, she purchased additional ________ insurance.

Managed health care/prepaid care plans differ from fee-for-service or traditional indemnity plans in that they

You might consider another insurance agent if your agent uses the ________ method to analyze the costs of a policy.

The ________ is the right of the policyholder to choose to receive the policy's cash value in exchange for the policyholder giving up his or her right to a death benefit.

Name and briefly describe the ten features found in almost all life insurance contracts.

The beneficiary is the individual designated by the owner of the life insurance policy to receive the insurance policy's proceeds upon the death of the insured.

What are some good reasons for a young, healthy, single person to purchase life insurance?

Group health insurance

You want to get a good buy on your life insurance contract. You find a book that compares insurance costs by incorporating the time value of money into its calculations. This method allows you to select wisely using the

Sylvester and JoAnn have both been laid off work during the last year and are now very poor. They found out that needy families can receive medical benefits through Medicaid. In addition, JoAnn found out that Medicaid can be used

The settlement option that provides for ongoing payments for a period of time is called ________.

Why are so many people without disability insurance?

Life insurance may not be necessary if