Exam 12: Life Insurance Planning

The suicide clause in a life insurance policy is an example of an endorsement.

Sales commissions represent as much as 90 percent of the first-year premium paid for a cash-value life insurance policy.​

The cost of replacing the household labor of a stay-at-home spouse should be included in life insurance planning.

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. -Using the needs approach,how much additional life insurance is needed on Antonio's life using his former income?

Once a life insurance policy has been in effect for two years,the company cannot deny a claim because of errors in the application.

If an insured falsely claims to be a nonsmoker to get life insurance at a lower premium,the insurance company could deny a request for payment of the death benefit.

You can buy life insurance designed specifically to pay off a home mortgage should the borrower pass away.

A term life insurance policy will pay out the ____ value if the insured dies during the term of the contract.

A survivorship joint life policy pays when the first insured dies.

One's need for life insurance is generally the greatest during which phase of the life cycle?

Life insurance should definitely provide funds to pay off all debts if the breadwinner dies.

Life insurance needs typically ____ over your lifetime.

More than one-half of all whole life policies lapse within ten years of being issued.

Independent agents sell insurance for more than one life insurance company.

Life insurance is generally least needed on the lives of

Which of the following life insurance applicants would pay the lowest insurance premiums?

A growing number of life insurance companies now make a policy's death benefit available to a terminally ill insured.

The guaranteed insurability option permits (for an extra cost) the cash-value policyholder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.

When the insured dies,the beneficiary receives both the face value and the cash value of a cash-value life insurance policy.

____ life policies are designed especially for those whose life insurance needs are high but who cannot immediately afford the required premiums.