Exam 9: Life and Health Insurance

A ________ is a savings plan offered by some employers that allows each employee to have pretax earnings deposited into a specially designated account for paying qualified medical and dependant care bills.

Suppose that your husband was killed in a bank robbery.Which of the following is not one of the typical settlement options that would be available?

Brenda's husband Bob died last week.Her agent told her she could receive the death proceeds tax-free and a monthly check until her death.He is talking about the ________ settlement option.

The coverage grace period gives you an extension of generally ________ in which to make your premium payment without cancelling your policy.

Only a long-term disability policy makes sense,because only it protects against financial catastrophe.

The difference between an individual practice association plan (IPA)and a group practice plan is that

Sharing the financial consequences associated with risk in the insurance industry is sometimes called

Which of the types of cash-value policies are permanent insurance?

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.

Convertible term life insurance can be converted into cash-value life insurance,depending on the insured's medical condition pending a medical exam.

Luke 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?

Term life insurance provides protection for a specified amount of time;typically 1-30 years.

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.

Who needs disability insurance?

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?

Let's assume you are the beneficiary of your great Aunt's life insurance policy.Sadly she passed away yesterday.You elect to receive annual payments from this policy for the next 20 years.The settlement amount is $500,000 and the interest accruing on the policy is an annual 8%.What will be your annual life insurance annuity payments?

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

The waiting or elimination period on one's disability insurance refers to the period after the disability during which no benefits can occur.The waiting period is equivalent to

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

Insurance that covers medical costs beyond those covered by basic health insurance is