Exam 12: 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. -Antonio and Trina decide to purchase a $300,000 policy on Trina and a $250,000 policy on Antonio.How much would these policies cost if they were $0.92 per $1,000 of coverage for Tina and $0.98 per $1,000 for Antonio?

(Multiple Choice)

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Question 101

The premium for a term insurance policy can increase with each renewal of the contract.

(True/False)

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Question 102

The price people pay for life insurance depends on their age,health,and income.

(True/False)

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Question 103

Young parents should focus on cash-value life insurance to meet their life insurance needs.

(True/False)

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Question 104

If one purposely lied about his or her health on a life insurance application,the company could refuse to pay the death benefit.

(True/False)

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Question 105

Some variable return life policies pay both the face amount and the accumulated cash value on the death of the insured party.

(True/False)

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Question 106

After a divorce,the noncustodial parent will have no need for life insurance on their former spouse.

(True/False)

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Question 107

Variable-universal life insurance policies have more flexibility than either universal or variable life insurance.

(True/False)

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Question 108

Life insurance is insurance that protects against financial losses resulting from death.

(True/False)

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Question 109

The major reason that people buy life insurance is to protect the person whose life is insured.

(True/False)

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Question 110

Underwriting is the process of insurance companies creating rate classification schedules to help decide whom they will insure and how much to charge.

(True/False)

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Question 111

Comparing the cost of various life insurance policies is relatively easy since the policies are quite similar.

(True/False)

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Question 112

Buying cash-value life insurance is a method of forced savings.

(True/False)

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Question 113

The beneficiary 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.

(True/False)

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Question 114

The premiums for a $100,000,20-year,decreasing term policy would be less than the premiums for a $100,000,20-year policy with a fixed face value,other things being equal.

(True/False)

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Question 115

Variable life insurance is also called flexible-premium variable life insurance.

(True/False)

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Question 116

A 5-year term life policy will cost ____ a 1-year renewable term policy during the fifth year of the 5-year period,other factors being equal.

(Multiple Choice)

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Question 117

To understand the different versions of cash-value life insurance policies that pay a variable return,you must evaluate

(Multiple Choice)

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Question 118

Nonforfeiture values are amounts stipulated in a life insurance policy that protect the value,if any,in the event that the policyholder chooses not to pay or fails to pay the required premiums.

(True/False)

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(80)

Question 119

Adjustable life insurance policies allow changes with no added proof of insurability.

(True/False)

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Question 120

Showing 101 - 120 of 215

The premium for a term insurance policy can increase with each renewal of the contract.

The price people pay for life insurance depends on their age,health,and income.

Young parents should focus on cash-value life insurance to meet their life insurance needs.

If one purposely lied about his or her health on a life insurance application,the company could refuse to pay the death benefit.

Some variable return life policies pay both the face amount and the accumulated cash value on the death of the insured party.

After a divorce,the noncustodial parent will have no need for life insurance on their former spouse.

Variable-universal life insurance policies have more flexibility than either universal or variable life insurance.

Life insurance is insurance that protects against financial losses resulting from death.

The major reason that people buy life insurance is to protect the person whose life is insured.

Underwriting is the process of insurance companies creating rate classification schedules to help decide whom they will insure and how much to charge.

Comparing the cost of various life insurance policies is relatively easy since the policies are quite similar.

Buying cash-value life insurance is a method of forced savings.

The beneficiary 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.

The premiums for a $100,000,20-year,decreasing term policy would be less than the premiums for a $100,000,20-year policy with a fixed face value,other things being equal.

Variable life insurance is also called flexible-premium variable life insurance.

A 5-year term life policy will cost ____ a 1-year renewable term policy during the fifth year of the 5-year period,other factors being equal.

To understand the different versions of cash-value life insurance policies that pay a variable return,you must evaluate

Nonforfeiture values are amounts stipulated in a life insurance policy that protect the value,if any,in the event that the policyholder chooses not to pay or fails to pay the required premiums.

Adjustable life insurance policies allow changes with no added proof of insurability.

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

The premium for a term insurance policy can increase with each renewal of the contract.

The price people pay for life insurance depends on their age,health,and income.

Young parents should focus on cash-value life insurance to meet their life insurance needs.

If one purposely lied about his or her health on a life insurance application,the company could refuse to pay the death benefit.

Some variable return life policies pay both the face amount and the accumulated cash value on the death of the insured party.

After a divorce,the noncustodial parent will have no need for life insurance on their former spouse.

Variable-universal life insurance policies have more flexibility than either universal or variable life insurance.​

Life insurance is insurance that protects against financial losses resulting from death.

The major reason that people buy life insurance is to protect the person whose life is insured.

Underwriting is the process of insurance companies creating rate classification schedules to help decide whom they will insure and how much to charge.

Comparing the cost of various life insurance policies is relatively easy since the policies are quite similar.

Buying cash-value life insurance is a method of forced savings.​

The beneficiary 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.

The premiums for a $100,000,20-year,decreasing term policy would be less than the premiums for a $100,000,20-year policy with a fixed face value,other things being equal.

Variable life insurance is also called flexible-premium variable life insurance.

A 5-year term life policy will cost ____ a 1-year renewable term policy during the fifth year of the 5-year period,other factors being equal.

To understand the different versions of cash-value life insurance policies that pay a variable return,you must evaluate

Nonforfeiture values are amounts stipulated in a life insurance policy that protect the value,if any,in the event that the policyholder chooses not to pay or fails to pay the required premiums.​

Adjustable life insurance policies allow changes with no added proof of insurability.

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

Variable-universal life insurance policies have more flexibility than either universal or variable life insurance.

Buying cash-value life insurance is a method of forced savings.

Nonforfeiture values are amounts stipulated in a life insurance policy that protect the value,if any,in the event that the policyholder chooses not to pay or fails to pay the required premiums.