Question 1

Which statement is correct about whole life insurance?

Accepted Answer

A) Whole life insurance is cheaper than term life. 
B) Policy holders overpay in the later years of the policy. 
C) Whole life premiums increase with your age. 
D) Whole life insurance is the best choice for most people. 
E) Whole life insurance builds up cash value. 
A) Whole life insurance is cheaper than term life. 
B) Policy holders overpay in the later years of the policy. 
C) Whole life premiums increase with your age. 
D) Whole life insurance is the best choice for most people. 
E) Whole life insurance builds up cash value.

Question 2

The accidental death benefit is often called double indemnity.

Accepted Answer

A) True 
 B)False

Question 3

Even though it is expensive, you should consider the accidental death benefit in a life insurance policy.

Accepted Answer

A) True 
 B)False

Question 4

Life insurance needs may be used to:

Accepted Answer

A) Go on vacation 
B) Provide a retirement income 
C) Buy a car 
D) Buy a home 
E) Retire 
A) Go on vacation 
B) Provide a retirement income 
C) Buy a car 
D) Buy a home 
E) Retire

Question 5

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

Accepted Answer

A) one 
B) ten 
C) thirty 
D) sixty 
E) ninety 
A) one 
B) ten 
C) thirty 
D) sixty 
E) ninety

Question 6

At what age have 13.21% of Canadian males died?

Accepted Answer

A) 20 years 
B) 35 years 
C) 50 years 
D) 65 years 
E) 75 years 
A) 20 years 
B) 35 years 
C) 50 years 
D) 65 years 
E) 75 years

Question 7

The incontestability clause stipulates that the insurance company can dispute the validity of the policy during the insured's lifetime.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true about group life insurance?

Accepted Answer

A) Group life has been losing its popularity recently. 
B) Generally the cost of insurance is the same for each employee. 
C) Group insurance is not a good bargain for older employees regardless of age. 
D) Principles that apply to other forms of insurance do not apply to group life insurance. 
E) Not worth getting. 
A) Group life has been losing its popularity recently. 
B) Generally the cost of insurance is the same for each employee. 
C) Group insurance is not a good bargain for older employees regardless of age. 
D) Principles that apply to other forms of insurance do not apply to group life insurance. 
E) Not worth getting.

Question 9

Life insurance premiums are determined basically by the

Accepted Answer

A) forces of supply. 
B) forces of demand. 
C) forces of competition. 
D) use of mortality tables. 
E) guesswork of insurance executives. 
A) forces of supply. 
B) forces of demand. 
C) forces of competition. 
D) use of mortality tables. 
E) guesswork of insurance executives.

Question 10

The waiting period in disability income insurance is called ____________ period.

Accepted Answer

A) Exclusion 
B) no benefit 
C) Coverage 
D) trade-off 
E) Elimination 
A) Exclusion 
B) no benefit 
C) Coverage 
D) trade-off 
E) Elimination

Question 11

If you wish to pay exactly the same premium each year, you would choose a participating policy.

Accepted Answer

A) True 
 B)False

Question 12

Suppose you are a typical family.Your annual income is $60,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (use 7 years)

Accepted Answer

A) $245,000. 
B) $294,000. 
C) $345,000. 
D) $400,000. 
E) $450,000. 
A) $245,000. 
B) $294,000. 
C) $345,000. 
D) $400,000. 
E) $450,000.

Question 13

Suppose you are a typical family.Your annual income is $70,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (for 7 years)

Accepted Answer

A) $260,000. 
B) $344,000. 
C) $375,000. 
D) $400,000. 
E) $490,000. 
A) $260,000. 
B) $344,000. 
C) $375,000. 
D) $400,000. 
E) $490,000.

Question 14

The waiting period for disability income insurance benefits is usually _________ after the beginning of the policy.

Accepted Answer

A) 0 days (no waiting period) 
B) 10 days 
C) 15 days 
D) 30 to ninety days 
E) 365 days 
A) 0 days (no waiting period) 
B) 10 days 
C) 15 days 
D) 30 to ninety days 
E) 365 days

Question 15

Factors that affect the price a company charges for a life insurance policy include

Accepted Answer

A) the returns on its investments 
B) the mortality rate it expects among its policyholders 
C) the features the policy contains 
D) competition among companies with comparable policies 
E) all these factors affect the price a company charges for a life insurance policy 
A) the returns on its investments 
B) the mortality rate it expects among its policyholders 
C) the features the policy contains 
D) competition among companies with comparable policies 
E) all these factors affect the price a company charges for a life insurance policy

Question 16

Critical insurance illness usually provides money for care if you are diagnosed with a serious illness such as AIDS.

Accepted Answer

A) True 
 B)False

Question 17

A term insurance policy pays a benefit only if you die during the period that the policy covers.

Accepted Answer

A) True 
 B)False

Question 18

Suppose you are a typical family.Your annual income is $80,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (for 7 years)

Accepted Answer

A) $345,000. 
B) $392,000. 
C) $445,000. 
D) $400,000. 
E) $560,000. 
A) $345,000. 
B) $392,000. 
C) $445,000. 
D) $400,000. 
E) $560,000.

Question 19

Subject to certain minimums, which life insurance is designed to let you pay premiums at any time in virtually any amount?

Accepted Answer

A) universal life 
B) ordinary life 
C) whole life. 
D) adjustable life 
E) variable life 
A) universal life 
B) ordinary life 
C) whole life. 
D) adjustable life 
E) variable life

Question 20

You wish to ensure that your life insurance will not cease once you reach the age of 70.Which types of life insurance would satisfy this need? I Whole Life Insurance
II Term-to-100 Insurance
III Universal Life Insurance
IV Declining Term Insurance

Accepted Answer

A) I and II only 
B) I, II and III only 
C) IV only 
D) I, III and IV only 
E) 1 and IV only 
A) I and II only 
B) I, II and III only 
C) IV only 
D) I, III and IV only 
E) 1 and IV only

Which statement is correct about whole life insurance?

The accidental death benefit is often called double indemnity.

Even though it is expensive, you should consider the accidental death benefit in a life insurance policy.

Life insurance needs may be used to:

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

At what age have 13.21% of Canadian males died?

The incontestability clause stipulates that the insurance company can dispute the validity of the policy during the insured's lifetime.

Which of the following statements is true about group life insurance?

Life insurance premiums are determined basically by the

The waiting period in disability income insurance is called ____________ period.

If you wish to pay exactly the same premium each year, you would choose a participating policy.

Suppose you are a typical family.Your annual income is $60,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (use 7 years)

Suppose you are a typical family.Your annual income is $70,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (for 7 years)

The waiting period for disability income insurance benefits is usually _________ after the beginning of the policy.

Factors that affect the price a company charges for a life insurance policy include

Critical insurance illness usually provides money for care if you are diagnosed with a serious illness such as AIDS.

A term insurance policy pays a benefit only if you die during the period that the policy covers.

Suppose you are a typical family.Your annual income is $80,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (for 7 years)

Subject to certain minimums, which life insurance is designed to let you pay premiums at any time in virtually any amount?

You wish to ensure that your life insurance will not cease once you reach the age of 70.Which types of life insurance would satisfy this need? I Whole Life Insurance II Term-to-100 Insurance III Universal Life Insurance IV Declining Term Insurance

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 9: Life, Health, and Disability Insurance

Which statement is correct about whole life insurance?

The accidental death benefit is often called double indemnity.

Even though it is expensive, you should consider the accidental death benefit in a life insurance policy.

Life insurance needs may be used to:

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

At what age have 13.21% of Canadian males died?

The incontestability clause stipulates that the insurance company can dispute the validity of the policy during the insured's lifetime.

Which of the following statements is true about group life insurance?

Life insurance premiums are determined basically by the

The waiting period in disability income insurance is called ____________ period.

If you wish to pay exactly the same premium each year, you would choose a participating policy.

Suppose you are a typical family.Your annual income is $60,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (use 7 years)

Suppose you are a typical family.Your annual income is $70,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (for 7 years)

The waiting period for disability income insurance benefits is usually _________ after the beginning of the policy.

Factors that affect the price a company charges for a life insurance policy include

Critical insurance illness usually provides money for care if you are diagnosed with a serious illness such as AIDS.

A term insurance policy pays a benefit only if you die during the period that the policy covers.

Suppose you are a typical family.Your annual income is $80,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of (for 7 years)

Subject to certain minimums, which life insurance is designed to let you pay premiums at any time in virtually any amount?

You wish to ensure that your life insurance will not cease once you reach the age of 70.Which types of life insurance would satisfy this need? I Whole Life Insurance II Term-to-100 Insurance III Universal Life Insurance IV Declining Term Insurance

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters