Question 1

Term life insurance is often described as pure protection because it pays benefits only if the insured person dies within the time period of the policy.

Accepted Answer

A) True 
 B)False

Question 2

Since homemakers do not have money income,no financial loss results from the premature death of a homemaker.

Accepted Answer

A) True 
 B)False

Question 3

The insured person retains all rights and privileges granted by a life insurance policy,including the right to amend the policy and the right to designate who receives the proceeds.

Accepted Answer

A) True 
 B)False

Question 4

You should be contributing the maximum into any available tax-sheltered retirement plan before you consider cash-value life insurance as a retirement savings vehicle.

Accepted Answer

A) True 
 B)False

Question 5

Limited-pay whole life insurance is whole-life insurance that allows premium payments to cease before you reach the age of 65.

Accepted Answer

A) True 
 B)False

Question 6

Modified life insurance is primarily designed for people whose life insurance needs are high but who cannot yet afford the high cost of cash-value life insurance.​

Accepted Answer

A) True 
 B)False

Question 7

Once a life insurance policy is issued,the insurance company cannot refuse to pay a death benefit.

Accepted Answer

A) True 
 B)False

Question 8

When an insured dies,any outstanding loan balance is ____ to determine the death benefit.

Accepted Answer

A) added to the face value 
B) subtracted from the face value 
C) added to the cash value 
D) subtracted from the cash value 
A) added to the face value 
B) subtracted from the face value 
C) added to the cash value 
D) subtracted from the cash value

Question 9

If one commits suicide less than one year after becoming insured,the life insurance will pay the beneficiary

Accepted Answer

A) nothing. 
B) the amount of premiums that had been paid. 
C) the face value of the policy. 
D) the cash value of the policy. 
A) nothing. 
B) the amount of premiums that had been paid. 
C) the face value of the policy. 
D) the cash value of the policy.

Question 10

The option that one might purchase if he or she wanted to increase the amount of cash value insurance held in the future is called

Accepted Answer

A) guaranteed renewability. 
B) guaranteed insurability. 
C) multiple indemnity. 
D) nonforfeiture. 
A) guaranteed renewability. 
B) guaranteed insurability. 
C) multiple indemnity. 
D) nonforfeiture.

Question 11

Cash-value life insurance is sometimes called permanent insurance.

Accepted Answer

A) True 
 B)False

Question 12

The multiple-of-earnings approach consists of multiplying one's income by some factor to derive an estimate of the amount of life insurance needed.

Accepted Answer

A) True 
 B)False

Question 13

Affordability is a benefit of layering term life insurance policies.​

Accepted Answer

A) True 
 B)False

Question 14

A life insurance policy irrevocably lapses when the premium is not paid by the stated due date.

Accepted Answer

A) True 
 B)False

Question 15

Universal life insurance provides both the pure protection of term insurance and the cash-value buildup of whole life insurance.

Accepted Answer

A) True 
 B)False

Question 16

If you borrow the cash value of your life insurance policy,any amount owed will be subtracted from the face amount of the policy should you die.

Accepted Answer

A) True 
 B)False

Question 17

Life insurance provides protection against dying too soon,and cash-value life insurance does this best.

Accepted Answer

A) True 
 B)False

Question 18

When a life insurance policy has both a beneficiary and a contingent beneficiary,these two persons will divide the proceeds of the policy equally after the death of the insured person.

Accepted Answer

A) True 
 B)False

Question 19

If one is adequately insured,there is no need for a multiple indemnity clause.

Accepted Answer

A) True 
 B)False

Question 20

The application for life insurance becomes an actual part of the life insurance policy/contract.

Accepted Answer

A) True 
 B)False

Term life insurance is often described as pure protection because it pays benefits only if the insured person dies within the time period of the policy.

Since homemakers do not have money income,no financial loss results from the premature death of a homemaker.

The insured person retains all rights and privileges granted by a life insurance policy,including the right to amend the policy and the right to designate who receives the proceeds.

You should be contributing the maximum into any available tax-sheltered retirement plan before you consider cash-value life insurance as a retirement savings vehicle.

Limited-pay whole life insurance is whole-life insurance that allows premium payments to cease before you reach the age of 65.

Modified life insurance is primarily designed for people whose life insurance needs are high but who cannot yet afford the high cost of cash-value life insurance.

Once a life insurance policy is issued,the insurance company cannot refuse to pay a death benefit.

When an insured dies,any outstanding loan balance is ____ to determine the death benefit.

If one commits suicide less than one year after becoming insured,the life insurance will pay the beneficiary

The option that one might purchase if he or she wanted to increase the amount of cash value insurance held in the future is called

Cash-value life insurance is sometimes called permanent insurance.

The multiple-of-earnings approach consists of multiplying one's income by some factor to derive an estimate of the amount of life insurance needed.

Affordability is a benefit of layering term life insurance policies.

A life insurance policy irrevocably lapses when the premium is not paid by the stated due date.

Universal life insurance provides both the pure protection of term insurance and the cash-value buildup of whole life insurance.

If you borrow the cash value of your life insurance policy,any amount owed will be subtracted from the face amount of the policy should you die.

Life insurance provides protection against dying too soon,and cash-value life insurance does this best.

When a life insurance policy has both a beneficiary and a contingent beneficiary,these two persons will divide the proceeds of the policy equally after the death of the insured person.

If one is adequately insured,there is no need for a multiple indemnity clause.

The application for life insurance becomes an actual part of the life insurance policy/contract.

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

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Exam 12: Life Insurance Planning

Term life insurance is often described as pure protection because it pays benefits only if the insured person dies within the time period of the policy.

Since homemakers do not have money income,no financial loss results from the premature death of a homemaker.

The insured person retains all rights and privileges granted by a life insurance policy,including the right to amend the policy and the right to designate who receives the proceeds.

You should be contributing the maximum into any available tax-sheltered retirement plan before you consider cash-value life insurance as a retirement savings vehicle.

Limited-pay whole life insurance is whole-life insurance that allows premium payments to cease before you reach the age of 65.

Modified life insurance is primarily designed for people whose life insurance needs are high but who cannot yet afford the high cost of cash-value life insurance.​

Once a life insurance policy is issued,the insurance company cannot refuse to pay a death benefit.

When an insured dies,any outstanding loan balance is ____ to determine the death benefit.

If one commits suicide less than one year after becoming insured,the life insurance will pay the beneficiary

The option that one might purchase if he or she wanted to increase the amount of cash value insurance held in the future is called

Cash-value life insurance is sometimes called permanent insurance.

The multiple-of-earnings approach consists of multiplying one's income by some factor to derive an estimate of the amount of life insurance needed.

Affordability is a benefit of layering term life insurance policies.​

A life insurance policy irrevocably lapses when the premium is not paid by the stated due date.

Universal life insurance provides both the pure protection of term insurance and the cash-value buildup of whole life insurance.

If you borrow the cash value of your life insurance policy,any amount owed will be subtracted from the face amount of the policy should you die.

Life insurance provides protection against dying too soon,and cash-value life insurance does this best.

When a life insurance policy has both a beneficiary and a contingent beneficiary,these two persons will divide the proceeds of the policy equally after the death of the insured person.

If one is adequately insured,there is no need for a multiple indemnity clause.

The application for life insurance becomes an actual part of the life insurance policy/contract.

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 primarily designed for people whose life insurance needs are high but who cannot yet afford the high cost of cash-value life insurance.

Affordability is a benefit of layering term life insurance policies.