Question 1

The needs-based approach to estimating life insurance coverage considers all of the factors that might affect the level of need.

Accepted Answer

A) True 
 B)False

Question 2

Convertible term insurance allows one to change the policy from the life of one person to that of another person without proving insurability.

Accepted Answer

A) True 
 B)False

Question 3

A modest funeral can easily cost more than $10,000.

Accepted Answer

A) True 
 B)False

Question 4

The ____ settlement option specifies that the insurance company pay out the total amount of the death benefit immediately after death.

Accepted Answer

A) income for life 
B) income of a specific amount 
C) lump-sum 
D) interest income 
A) income for life 
B) income of a specific amount 
C) lump-sum 
D) interest income

Question 5

Antonio and Trina are a young couple with two small children, Jason (age four) and Claudia (age two). Trina is an account executive for a brokerage firm while Antonio has taken a couple years off from his profession as a civil engineer to work on an MBA degree. Right now Antonio and Trina's budget is very tight, as they are accustomed to living on two incomes, but Trina's employer has just circulated employer benefit information, so Antonio and Trina believe this is a good time to evaluate their life insurance needs. They have listed the financial information they believe is relevant.
  
-How much additional life insurance is needed on Antonio's life using his former income and the 7-year multiple-of-earnings approach?

Accepted Answer

A) $562,500 
B) $487,500 
C) $315,000 
D) $240,000 
A) $562,500 
B) $487,500 
C) $315,000 
D) $240,000

Question 6

The ____ are the broadly defined coverages provided under the policy.

Accepted Answer

A) insuring agreements 
B) declarations 
C) endorsements 
D) exclusions 
A) insuring agreements 
B) declarations 
C) endorsements 
D) exclusions

Question 7

The largest potential financial loss resulting from premature death is lost income.

Accepted Answer

A) True 
 B)False

Question 8

The person who receives the proceeds of a life insurance policy at the death of the person whose life is insured is the

Accepted Answer

A) policy-holder. 
B) beneficiary. 
C) insured. 
D) insuree. 
A) policy-holder. 
B) beneficiary. 
C) insured. 
D) insuree.

Question 9

You should rely on an insurance agent to determine how much life insurance you need.

Accepted Answer

A) True 
 B)False

Question 10

A young,healthy person may be able to buy term life insurance privately at lower premiums than through a group policy.

Accepted Answer

A) True 
 B)False

Question 11

Providing for a secure income for your family can be met through adequate term life insurance when in your childrearing years that is replaced with your _________ as you enter the empty-nest years and approach retirement.

Accepted Answer

A) whole-life insurance. 
B) cash-value life insurance. 
C) retirement nest egg. 
D) Social Security. 
A) whole-life insurance. 
B) cash-value life insurance. 
C) retirement nest egg. 
D) Social Security.

Question 12

You should ignore net cost calculations provided by a life insurance agent when evaluating the cost of a life insurance policy.

Accepted Answer

A) True 
 B)False

Question 13

Modified life insurance is a form of life insurance for which the insurance company charges reduced premiums in the early years and higher premiums thereafter.​

Accepted Answer

A) True 
 B)False

Question 14

The typical time period for a grace period in life insurance is 15 days.

Accepted Answer

A) True 
 B)False

Question 15

The person on whose life a life insurance policy is written is called the

Accepted Answer

A) beneficiary. 
B) contingent beneficiary. 
C) policyholder. 
D) insured. 
A) beneficiary. 
B) contingent beneficiary. 
C) policyholder. 
D) insured.

The needs-based approach to estimating life insurance coverage considers all of the factors that might affect the level of need.

Convertible term insurance allows one to change the policy from the life of one person to that of another person without proving insurability.

A modest funeral can easily cost more than $10,000.

The ____ settlement option specifies that the insurance company pay out the total amount of the death benefit immediately after death.

The ____ are the broadly defined coverages provided under the policy.

The largest potential financial loss resulting from premature death is lost income.

The person who receives the proceeds of a life insurance policy at the death of the person whose life is insured is the

You should rely on an insurance agent to determine how much life insurance you need.

A young,healthy person may be able to buy term life insurance privately at lower premiums than through a group policy.

Providing for a secure income for your family can be met through adequate term life insurance when in your childrearing years that is replaced with your _________ as you enter the empty-nest years and approach retirement.

You should ignore net cost calculations provided by a life insurance agent when evaluating the cost of a life insurance policy.

Modified life insurance is a form of life insurance for which the insurance company charges reduced premiums in the early years and higher premiums thereafter.

The typical time period for a grace period in life insurance is 15 days.

The person on whose life a life insurance policy is written is called the

Understanding Personal Finance

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Financial Statements,tools,and Budgets

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Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Investment Fundamentals

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Exam 12: Life Insurance Planning

The needs-based approach to estimating life insurance coverage considers all of the factors that might affect the level of need.

Convertible term insurance allows one to change the policy from the life of one person to that of another person without proving insurability.

A modest funeral can easily cost more than $10,000.

The ____ settlement option specifies that the insurance company pay out the total amount of the death benefit immediately after death.

The ____ are the broadly defined coverages provided under the policy.

The largest potential financial loss resulting from premature death is lost income.

The person who receives the proceeds of a life insurance policy at the death of the person whose life is insured is the

You should rely on an insurance agent to determine how much life insurance you need.

A young,healthy person may be able to buy term life insurance privately at lower premiums than through a group policy.

Providing for a secure income for your family can be met through adequate term life insurance when in your childrearing years that is replaced with your _________ as you enter the empty-nest years and approach retirement.

You should ignore net cost calculations provided by a life insurance agent when evaluating the cost of a life insurance policy.

Modified life insurance is a form of life insurance for which the insurance company charges reduced premiums in the early years and higher premiums thereafter.​

The typical time period for a grace period in life insurance is 15 days.

The person on whose life a life insurance policy is written is called the

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Retirement and Estate Planning

Filters

Modified life insurance is a form of life insurance for which the insurance company charges reduced premiums in the early years and higher premiums thereafter.