Question 1

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

Accepted Answer

A)  20 
B)  40 
C)  50 
D)  70 
E)  80 
A)  20 
B)  40 
C)  50 
D)  70 
E)  80 D

Question 2

According to a survey by Salary.com, the equivalent salary of a stay-at-home mom is approximately how much?

Accepted Answer

A)  $54,000 
B)  $76,000 
C)  $97,000 
D)  $113,000 
E)  $120,000 
A)  $54,000 
B)  $76,000 
C)  $97,000 
D)  $113,000 
E)  $120,000 D

Question 3

Under the waiver of premium disability benefit provision, the company waives any premiums that are due after the onset of total and permanent disability.

Accepted Answer

A) True 
 B)False  True

Question 4

Lori Simpson is thinking about purchasing some life insurance. She goes to a company where the policyholders are essentially the owners of the company. What type of life insurance company has she visited?

Accepted Answer

A)  Stock 
B)  Debt 
C)  Mutual 
D)  Exclusionary 
E)  Cooperative 
A)  Stock 
B)  Debt 
C)  Mutual 
D)  Exclusionary 
E)  Cooperative

Question 5

The cost-of-living protection rider is designed to help prevent inflation from eroding the purchasing power of the protection your policy provides.

Accepted Answer

A) True 
 B)False

Question 6

Your annual income is $100,000. You have a spouse, two kids, a dog and a mortgage - a typical family. What is your life insurance need based on the easy method?

Accepted Answer

A)  $310,000 
B)  $490,000 
C)  $700,000 
D)  $1,000,000 
E)  $1,200,000 
A)  $310,000 
B)  $490,000 
C)  $700,000 
D)  $1,000,000 
E)  $1,200,000

Question 7

After you buy new life insurance you have a "free look" period of ______ days.

Accepted Answer

A)  10 
B)  20 
C)  30 
D)  40 
E)  50 
A)  10 
B)  20 
C)  30 
D)  40 
E)  50

Question 8

Consumer awareness of life insurance has changed little over the years.

Accepted Answer

A) True 
 B)False

Question 9

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Accepted Answer

A) True 
 B)False

Question 10

Fundamentally, group insurance is ____________ insurance.

Accepted Answer

A)  term 
B)  whole life 
C)  ordinary life 
D)  permanent 
E)  universal life 
A)  term 
B)  whole life 
C)  ordinary life 
D)  permanent 
E)  universal life

Question 11

If life insurance proceeds are left with the company, the company acts as trustee and pays the interest to the beneficiary.

Accepted Answer

A) True 
 B)False

Question 12

The cash values of a variable life insurance policy increase at a constant rate over time.

Accepted Answer

A) True 
 B)False

Question 13

When your life insurance objectives change, you should review the provisions in your policy before making any decisions regarding the policy.

Accepted Answer

A) True 
 B)False

Question 14

Your annual income is $50,000. What is your life insurance need based on the easy method?

Accepted Answer

A)  $245,000 
B)  $300,000 
C)  $345,000 
D)  $400,000 
E)  $450,000 
A)  $245,000 
B)  $300,000 
C)  $345,000 
D)  $400,000 
E)  $450,000

Question 15

Term insurance continues for the entire term even if you stop paying the premiums.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following statements correctly applies to term insurance?

Accepted Answer

A)  The premiums remain constant. 
B)  The policy builds cash value. 
C)  Protection is for a specified period of time. 
D)  It usually is more expensive than whole life insurance. 
E)  The investment performance varies with the stock market. 
A)  The premiums remain constant. 
B)  The policy builds cash value. 
C)  Protection is for a specified period of time. 
D)  It usually is more expensive than whole life insurance. 
E)  The investment performance varies with the stock market.

Question 17

Cash value policies may make sense for people who intend to keep the policies for only a couple of years.

Accepted Answer

A) True 
 B)False

Question 18

Two basic types of life insurance are temporary and permanent insurance.

Accepted Answer

A) True 
 B)False

Question 19

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n):

Accepted Answer

A)  rider. 
B)  waiver of premium. 
C)  automatic premium loan. 
D)  beneficiary. 
E)  incontestability clause. 
A)  rider. 
B)  waiver of premium. 
C)  automatic premium loan. 
D)  beneficiary. 
E)  incontestability clause.

Question 20

Lisa Smith has her age listed on her driver's license as being three years younger than it actually is. This is also how old she tells her insurance company she is. Her insurance company has discovered she lied about her age. What provision of her life insurance contract states that her benefits will be what her premium would have bought if she had been truthful about her age?

Accepted Answer

A)  Policy loan 
B)  Misstatement of age 
C)  Cost-of-living protection 
D)  Guaranteed insurability 
E)  Grace period 
A)  Policy loan 
B)  Misstatement of age 
C)  Cost-of-living protection 
D)  Guaranteed insurability 
E)  Grace period

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

According to a survey by Salary.com, the equivalent salary of a stay-at-home mom is approximately how much?

Under the waiver of premium disability benefit provision, the company waives any premiums that are due after the onset of total and permanent disability.

Lori Simpson is thinking about purchasing some life insurance. She goes to a company where the policyholders are essentially the owners of the company. What type of life insurance company has she visited?

The cost-of-living protection rider is designed to help prevent inflation from eroding the purchasing power of the protection your policy provides.

Your annual income is $100,000. You have a spouse, two kids, a dog and a mortgage - a typical family. What is your life insurance need based on the easy method?

After you buy new life insurance you have a "free look" period of ______ days.

Consumer awareness of life insurance has changed little over the years.

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Fundamentally, group insurance is ____________ insurance.

If life insurance proceeds are left with the company, the company acts as trustee and pays the interest to the beneficiary.

The cash values of a variable life insurance policy increase at a constant rate over time.

When your life insurance objectives change, you should review the provisions in your policy before making any decisions regarding the policy.

Your annual income is $50,000. What is your life insurance need based on the easy method?

Term insurance continues for the entire term even if you stop paying the premiums.

Which one of the following statements correctly applies to term insurance?

Cash value policies may make sense for people who intend to keep the policies for only a couple of years.

Two basic types of life insurance are temporary and permanent insurance.

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n):

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters

Exam 12: Life Insurance

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

According to a survey by Salary.com, the equivalent salary of a stay-at-home mom is approximately how much?

Under the waiver of premium disability benefit provision, the company waives any premiums that are due after the onset of total and permanent disability.

Lori Simpson is thinking about purchasing some life insurance. She goes to a company where the policyholders are essentially the owners of the company. What type of life insurance company has she visited?

The cost-of-living protection rider is designed to help prevent inflation from eroding the purchasing power of the protection your policy provides.

Your annual income is $100,000. You have a spouse, two kids, a dog and a mortgage - a typical family. What is your life insurance need based on the easy method?

After you buy new life insurance you have a "free look" period of ______ days.

Consumer awareness of life insurance has changed little over the years.

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Fundamentally, group insurance is ____________ insurance.

If life insurance proceeds are left with the company, the company acts as trustee and pays the interest to the beneficiary.

The cash values of a variable life insurance policy increase at a constant rate over time.

When your life insurance objectives change, you should review the provisions in your policy before making any decisions regarding the policy.

Your annual income is $50,000. What is your life insurance need based on the easy method?

Term insurance continues for the entire term even if you stop paying the premiums.

Which one of the following statements correctly applies to term insurance?

Cash value policies may make sense for people who intend to keep the policies for only a couple of years.

Two basic types of life insurance are temporary and permanent insurance.

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n):

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters