Question 1

When is convertible term life a good idea?

Accepted Answer

Convertible term life allows you to enjo

Question 2

It should be everyone's goal to become self-insured when it comes to Life insurance.Explain how and why this should be?

Accepted Answer

When most people are young,they have neg

Question 3

Barry Blair wants to select a good life insurance agent.His dad has had several negative experiences with life insurance agents in the past.What should Barry consider when selecting an agent?

Accepted Answer

A)  Has a professional designation 
B)  Is a full-time agent 
C)  Has the necessary experience and training 
D)  Has references 
E)  All of the above 
A)  Has a professional designation 
B)  Is a full-time agent 
C)  Has the necessary experience and training 
D)  Has references 
E)  All of the above

Question 4

What are the main features of whole life insurance?

Accepted Answer

A)  The premiums stay constant for your entire life. 
B)  The nonforfeiture right allows you access to the cash value account if needed. 
C)  It provides your with permanent insurance regardless of age and health issues. 
D)  All of the above are correct. 
E)  All but B are correct. 
A)  The premiums stay constant for your entire life. 
B)  The nonforfeiture right allows you access to the cash value account if needed. 
C)  It provides your with permanent insurance regardless of age and health issues. 
D)  All of the above are correct. 
E)  All but B are correct.

Question 5

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

Accepted Answer

A)  interest-adjusted net cost method. 
B)  traditional net cost method. 
C)  variable method. 
D)  comparison cost index. 
A)  interest-adjusted net cost method. 
B)  traditional net cost method. 
C)  variable method. 
D)  comparison cost index.

Question 6

What are the disadvantages of group term insurance?

Accepted Answer

A)  The premiums are usually subsidized by the employer. 
B)  The cost to covert from group coverage to individual coverage if you leave the company may be cost prohibitive. 
C)  Relying on group insurance may hinder your decision to leave the company. 
D)  Both B and C are correct. 
A)  The premiums are usually subsidized by the employer. 
B)  The cost to covert from group coverage to individual coverage if you leave the company may be cost prohibitive. 
C)  Relying on group insurance may hinder your decision to leave the company. 
D)  Both B and C are correct.

Question 7

What are some drawbacks of term life insurance?

Accepted Answer

Term life insurance becomes ve

Question 8

Your health care coverage is with a PPO.For approved,in-network providers your deductible is $500 and your coinsurance provision is 80%.For out-of-network providers,your deductible is $1,000 and your coinsurance provision is 70%.Assume there is no co-pay provision and you have no other claims this calendar year.You have decided to go to a specialist that is not in the network and the bill is $1,400.How much will you have to pay out-of-pocket?

Accepted Answer

A)  $1,400 
B)  $1,120 
C)  $420 
D)  $1,320 
A)  $1,400 
B)  $1,120 
C)  $420 
D)  $1,320

Question 9

The needs approach to determining life insurance amounts considers which of the following?

Accepted Answer

A)  Immediate financial needs 
B)  Debt elimination funds 
C)  Dependency expenses 
D)  All of the above 
A)  Immediate financial needs 
B)  Debt elimination funds 
C)  Dependency expenses 
D)  All of the above

Question 10

All of the following are types of life insurance annuity settlements except

Accepted Answer

A)  straight life annuity. 
B)  period certain annuity. 
C)  refund annuity. 
D)  joint life and survivorship annuity. 
E)  variable annuity. 
A)  straight life annuity. 
B)  period certain annuity. 
C)  refund annuity. 
D)  joint life and survivorship annuity. 
E)  variable annuity.

Question 11

Short-term disability insurance generally provides benefits on disabilities from ________ after a short wait of ________ days.

Accepted Answer

A)  one day to three months; zero 
B)  30 days to three months; 7 
C)  three month to six months; 8 to 10 
D)  six months to two years; 8 to 30 
E)  none of the above 
A)  one day to three months; zero 
B)  30 days to three months; 7 
C)  three month to six months; 8 to 10 
D)  six months to two years; 8 to 30 
E)  none of the above

Question 12

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?

Accepted Answer

A)  Term insurance 
B)  Fixed premium insurance 
C)  Cash-value insurance 
D)  Universal life insurance 
E)  None of the above 
A)  Term insurance 
B)  Fixed premium insurance 
C)  Cash-value insurance 
D)  Universal life insurance 
E)  None of the above

Question 13

Suppose that you wanted to purchase insurance that is sold by a private insurance company that will help bridge the gap in your Medicare coverage.You would purchase what type of insurance?

Accepted Answer

A)  Medicare Additional insurance 
B)  Medigap insurance 
C)  Medicare Plus insurance 
D)  Medicare Bridge insurance 
E)  None of the above 
A)  Medicare Additional insurance 
B)  Medigap insurance 
C)  Medicare Plus insurance 
D)  Medicare Bridge insurance 
E)  None of the above

Question 14

Nancy and Leonard are married.They have two children who will be financially dependent for the next 20 years.They are taking out life insurance on Leonard,the bread winner and earns an annual salary of $80,000.Nancy is sure she is able to get a 9.5% rate of return on the policy settlement.Using the earnings multiple approach calculate how much life insurance they should take out on Leonard.

Accepted Answer

A)  $1,038,225 
B)  $1,704,952 
C)  $549,893 
D)  $301,471 
E)  None of the above 
A)  $1,038,225 
B)  $1,704,952 
C)  $549,893 
D)  $301,471 
E)  None of the above

Question 15

How does the concept of "opting out" work?

Accepted Answer

An employer may offer employees a cash i

Question 16

According to the Affordable Care Act,children are allowed to stay on their parents insurance policy until they turn

Accepted Answer

A)  21. 
B)  22. 
C)  24. 
D)  26. 
A)  21. 
B)  22. 
C)  24. 
D)  26.

Question 17

Tell about the pros of group term life insurance.

Accepted Answer

Group term life is often less expensive

Question 18

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 19

Briefly explain the different types of health insurance.

Accepted Answer

Most health insurance is basic health in

Question 20

With decreasing term life insurance,the face amount of the policy remains constant,but the premiums decrease.

Accepted Answer

A) True 
 B)False

When is convertible term life a good idea?

It should be everyone's goal to become self-insured when it comes to Life insurance.Explain how and why this should be?

Barry Blair wants to select a good life insurance agent.His dad has had several negative experiences with life insurance agents in the past.What should Barry consider when selecting an agent?

What are the main features of whole life 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

What are the disadvantages of group term insurance?

What are some drawbacks of term life insurance?

The needs approach to determining life insurance amounts considers which of the following?

All of the following are types of life insurance annuity settlements except

Short-term disability insurance generally provides benefits on disabilities from after a short wait of days.

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?

Suppose that you wanted to purchase insurance that is sold by a private insurance company that will help bridge the gap in your Medicare coverage.You would purchase what type of insurance?

How does the concept of "opting out" work?

According to the Affordable Care Act,children are allowed to stay on their parents insurance policy until they turn

Tell about the pros of group term life insurance.

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

Briefly explain the different types of health insurance.

With decreasing term life insurance,the face amount of the policy remains constant,but the premiums decrease.

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

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

When is convertible term life a good idea?

It should be everyone's goal to become self-insured when it comes to Life insurance.Explain how and why this should be?

Barry Blair wants to select a good life insurance agent.His dad has had several negative experiences with life insurance agents in the past.What should Barry consider when selecting an agent?

What are the main features of whole life 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

What are the disadvantages of group term insurance?

What are some drawbacks of term life insurance?

The needs approach to determining life insurance amounts considers which of the following?

All of the following are types of life insurance annuity settlements except

Short-term disability insurance generally provides benefits on disabilities from ________ after a short wait of ________ days.

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?

Suppose that you wanted to purchase insurance that is sold by a private insurance company that will help bridge the gap in your Medicare coverage.You would purchase what type of insurance?

How does the concept of "opting out" work?

According to the Affordable Care Act,children are allowed to stay on their parents insurance policy until they turn

Tell about the pros of group term life insurance.

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

Briefly explain the different types of health insurance.

With decreasing term life insurance,the face amount of the policy remains constant,but the premiums decrease.

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

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

Short-term disability insurance generally provides benefits on disabilities from after a short wait of days.