Question 1

To collect the benefits from a critical illness insurance policy,you must survive a specified illness for 30 days.

Accepted Answer

A) True 
 B)False

Question 2

Term life insurance is considered temporary insurance,since the policy is in effect for only a relatively short period of time.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an important rider for a young person who is not sure of their future life insurance needs?

Accepted Answer

A) Waiver of premium rider 
B) Guaranteed insurability rider 
C) Accidental death rider 
D) Term rider 
A) Waiver of premium rider 
B) Guaranteed insurability rider 
C) Accidental death rider 
D) Term rider

Question 4

The cost of having an aide provide basic care such as assistance with feeding and dressing can easily cost over $50 000 per year.

Accepted Answer

A) True 
 B)False

Question 5

The death benefit and cash values are not guaranteed in a universal life insurance contract but are in whole life.

Accepted Answer

A) True 
 B)False

Question 6

Critical illness insurance benefits are paid out to disabled employees on a monthly basis.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an important consideration from the employer's perspective in sponsoring a group benefits plan?

Accepted Answer

A) The ability to write off premiums as business expenses 
B) Providing coverage for employees who are uninsurable 
C) Encouraging loyalty and trust from employees 
D) Improving staff retention 
A) The ability to write off premiums as business expenses 
B) Providing coverage for employees who are uninsurable 
C) Encouraging loyalty and trust from employees 
D) Improving staff retention

Question 8

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?

Accepted Answer

A) Universal life with level term insurance 
B) Term to 100 
C) Whole life 
D) Universal Life with YRT 
A) Universal life with level term insurance 
B) Term to 100 
C) Whole life 
D) Universal Life with YRT

Question 9

Sam's annual income is $60 000 and Jane is staying home looking after their children.If Sam died,they figure it would take $350 000 invested at four percent to provide suitable income for the family for 15 years until the kids are more independent.They would also like to have $40 000 set aside for university for his two children.Sam and Jane's total RRSP savings are $120 000.How much life insurance does he need using the budget method?

Accepted Answer

A) $270 000 
B) $350 000 
C) $390 000 
D) $500 000 
A) $270 000 
B) $350 000 
C) $390 000 
D) $500 000

Question 10

In which case are life insurance benefits not payable?

Accepted Answer

A) If the insured is killed in an accident ten days after the policy's effective date. 
B) If the insured commits suicide within two years of the policy's effective date. 
C) If the insured is diagnosed with a serious illness one month after the policy's effective date. 
D) If the insured is killed in a car accident and the premium is 23 days overdue. 
A) If the insured is killed in an accident ten days after the policy's effective date. 
B) If the insured commits suicide within two years of the policy's effective date. 
C) If the insured is diagnosed with a serious illness one month after the policy's effective date. 
D) If the insured is killed in a car accident and the premium is 23 days overdue.

Question 11

If John's business had purchased disability insurance coverage for its employees which was guaranteed renewable,which of the following is True?

Accepted Answer

A) The insurance company must renew the coverage with same benefits and premiums at the renewal date. 
B) The employer must renew the same benefits each year,even if the premiums increase. 
C) The insurance company must renew the coverage with the same benefits but could increase the premiums. 
D) The insurance company must renew the coverage,but could change the definition of disability used. 
A) The insurance company must renew the coverage with same benefits and premiums at the renewal date. 
B) The employer must renew the same benefits each year,even if the premiums increase. 
C) The insurance company must renew the coverage with the same benefits but could increase the premiums. 
D) The insurance company must renew the coverage,but could change the definition of disability used.

Question 12

Some disadvantages of term insurance are that it increases in cost when you renew it and that it has no value when it matures or you discontinue your policy.

Accepted Answer

A) True 
 B)False

Question 13

In comparing term insurance with mortgage life insurance,which of the following is True?

Accepted Answer

A) The premiums decrease with mortgage insurance but not with term insurance. 
B) Mortgage insurance is less expensive because of the group discount. 
C) The owner has more control with term insurance. 
D) Mortgage insurance is guaranteed renewable. 
A) The premiums decrease with mortgage insurance but not with term insurance. 
B) Mortgage insurance is less expensive because of the group discount. 
C) The owner has more control with term insurance. 
D) Mortgage insurance is guaranteed renewable.

Question 14

Which of the following is True about the cost of health care in Canada?

Accepted Answer

A) The supplementary heath care benefits funded by the provinces vary across the country. 
B) The federal government administers all Canadian health care through the Canada Health Act. 
C) Health care costs as a portion of revenue are growing minimally over time. 
D) Approximately half the funding for health care comes from private health care plans. 
A) The supplementary heath care benefits funded by the provinces vary across the country. 
B) The federal government administers all Canadian health care through the Canada Health Act. 
C) Health care costs as a portion of revenue are growing minimally over time. 
D) Approximately half the funding for health care comes from private health care plans.

Question 15

The problem with the cash value built up in a whole life insurance policy is that the money can only be used to pay off the policy or buy additional insurance.

Accepted Answer

A) True 
 B)False

To collect the benefits from a critical illness insurance policy,you must survive a specified illness for 30 days.

Term life insurance is considered temporary insurance,since the policy is in effect for only a relatively short period of time.

Which of the following is an important rider for a young person who is not sure of their future life insurance needs?

The cost of having an aide provide basic care such as assistance with feeding and dressing can easily cost over $50 000 per year.

The death benefit and cash values are not guaranteed in a universal life insurance contract but are in whole life.

Critical illness insurance benefits are paid out to disabled employees on a monthly basis.

Which of the following is not an important consideration from the employer's perspective in sponsoring a group benefits plan?

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?

In which case are life insurance benefits not payable?

If John's business had purchased disability insurance coverage for its employees which was guaranteed renewable,which of the following is True?

Some disadvantages of term insurance are that it increases in cost when you renew it and that it has no value when it matures or you discontinue your policy.

In comparing term insurance with mortgage life insurance,which of the following is True?

Which of the following is True about the cost of health care in Canada?

The problem with the cash value built up in a whole life insurance policy is that the money can only be used to pay off the policy or buy additional insurance.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 9: Protecting Your Wealth - Health and Life Insurance

To collect the benefits from a critical illness insurance policy,you must survive a specified illness for 30 days.

Term life insurance is considered temporary insurance,since the policy is in effect for only a relatively short period of time.

Which of the following is an important rider for a young person who is not sure of their future life insurance needs?

The cost of having an aide provide basic care such as assistance with feeding and dressing can easily cost over $50 000 per year.

The death benefit and cash values are not guaranteed in a universal life insurance contract but are in whole life.

Critical illness insurance benefits are paid out to disabled employees on a monthly basis.

Which of the following is not an important consideration from the employer's perspective in sponsoring a group benefits plan?

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?

In which case are life insurance benefits not payable?

If John's business had purchased disability insurance coverage for its employees which was guaranteed renewable,which of the following is True?

Some disadvantages of term insurance are that it increases in cost when you renew it and that it has no value when it matures or you discontinue your policy.

In comparing term insurance with mortgage life insurance,which of the following is True?

Which of the following is True about the cost of health care in Canada?

The problem with the cash value built up in a whole life insurance policy is that the money can only be used to pay off the policy or buy additional insurance.

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters