Exam 9: Protecting Your Wealth - Health and Life Insurance

Some advantages of whole life insurance are that it can provide coverage until death,the premiums and death benefit are guaranteed,and there is a savings or cash value feature.

The Wongs prefer whole life insurance because it will provide for their beneficiaries,regardless of how long they live,but they cannot afford the premiums for the full $1.1 million coverage they feel they need.What would be the best option for them?

Your life insurance policy can be terminated if you understate your age on the application form.

While the Canada Health Act ensures that medically necessary services are provided based on individual need rather than the ability to pay,who funds the supplementary benefits available to certain segments of the population such as seniors,children,and social assistance recipients?

Which of the following is True regarding policy dividends from insurance?

Disability insurance coverage will replace all your lost income while disabled.

Now that you have studied home,auto,liability,health,disability,critical illness,and long-term care insurance coverage,you should have a good understanding of how they relate to your financial plan.With respect to each type of insurance,discuss the relative importance that each type has to your current understanding of financial planning.Rank the importance of each type of coverage as it pertains to you personally.What types of insurance could you do without? What coverage can you not do without under your present circumstances? What types of insurance would you consider adding to your plan as your lifestyle changes?

The budget method for determining the amount of life insurance needed is based on

There is very little need for individual disability insurance because most workers have employer-sponsored disability coverage and are also eligible for CPP and worker's compensation.

If the policy owner decides to terminate the policy prior to death,the cash value can be used in a variety of ways.What is this called?

Which of the following statements is True regarding disability insurance?

Individual health insurance plans

The term grace period is very important to an insurance policy because

Family A consists of two spouses in their early thirties who have two children.They have just purchased a house with a low down payment,so they have a fairly high mortgage.They own two older cars.He works as an engineer with growing earnings potential and he has very basic medical coverage and a small insurance policy at work.She is studying accounting part-time while she stays home to look after the children. Family B consists of a single woman in her late twenties who has been granted tenure as a professor at York University.Student loans are at a minimum,as they have been paid regularly since graduating with her PhD.Because of her dedication to academics,there is no plan for marriage in the long-term future.She owns a recent model compact car and occupies a one-bedroom apartment close to the school.She has a valuable art collection,most of which was left to her by her parents,and she intends to add to it as her growing income permits.Annual long-term vacations are her second passion.She will not qualify for York University's benefit plan until she completes two years of probationary service. Compare and contrast the insurance needs of these two cases.Please be as comprehensive as possible and provide the reasons for each decision.

A rider is an option that allows you to customize an insurance policy,such as by adding term insurance for a child.

You may be able save money on disability insurance premiums if your emergency fund is large enough to cover a few months' expenses,allowing you to select a longer waiting period.

Which of the following factors is most important in determining your life insurance premium rate?

Jenny has no dependents,an annual income of $50 000,and debt of $100 000.How much insurance should she buy using the income method and a factor of 10?

While the Canada Health Act is federal legislation,it is the responsibility of the provinces and territories to Administer and deliver health care services.

As of 2012,which was True about life and health insurance in Canada?