Exam 12: Life Insurance

Catherine Carey has made the choice to stay home and raise her three kids while her husband works. She wants to determine her insurance need. What method was specifically designed for someone in her situation?

(Multiple Choice)

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Question 21

What percent of all applicants who apply for life insurance are found to be insurable?

(Multiple Choice)

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Question 22

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

(Multiple Choice)

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Question 23

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

(True/False)

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Question 24

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

(True/False)

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Question 25

Households with small children most often have the greatest need for life insurance.

(True/False)

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Question 26

How many different types of basic life insurance are there?

(Multiple Choice)

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Question 27

Decreasing term life insurance is no longer available.

(True/False)

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Question 28

Term insurance is protection for a specified period of time, usually 1, 5, 10, or 20 years.

(True/False)

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Question 29

Usually, there is no time limit on reinstatement of a lapsed life insurance policy.

(True/False)

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Question 30

A primary reason for buying an annuity is to give you retirement income for the rest of your life.

(True/False)

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Question 31

Your annual income is $35,000. What is your life insurance need based on the easy method?

(Multiple Choice)

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Question 32

Some experts claim that credit life insurance policies are:

(Multiple Choice)

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Question 33

The grace period normally allows ____________ days to elapse, during which time the premium may be paid on an insurance policy.

(Multiple Choice)

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Question 34

The insurance industry rule of thumb that a typical family will need 70% of salary for seven years in order to adjust for the financial consequences of a salary earner's death is known as which of the following estimation methods?

(Multiple Choice)

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Question 35

A contract stating that the annuitant will receive a constant amount of income over a certain period or for life is called a:

(Multiple Choice)

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Question 36

Stock life insurance companies are owned by their policyholders.

(True/False)

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Question 37

The prices of life insurance policies:

(Multiple Choice)

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Question 38

Because the premium payment period for a limited payment policy is shorter than that of a whole life policy, the annual premium is higher.

(True/False)

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(90)

Question 39

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

(Multiple Choice)

4.8/5

(84)

Question 40

Showing 21 - 40 of 167

Catherine Carey has made the choice to stay home and raise her three kids while her husband works. She wants to determine her insurance need. What method was specifically designed for someone in her situation?

What percent of all applicants who apply for life insurance are found to be insurable?

Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?

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

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

Households with small children most often have the greatest need for life insurance.

How many different types of basic life insurance are there?

Decreasing term life insurance is no longer available.

Term insurance is protection for a specified period of time, usually 1, 5, 10, or 20 years.

Usually, there is no time limit on reinstatement of a lapsed life insurance policy.

A primary reason for buying an annuity is to give you retirement income for the rest of your life.

Your annual income is $35,000. What is your life insurance need based on the easy method?

Some experts claim that credit life insurance policies are:

The grace period normally allows ____________ days to elapse, during which time the premium may be paid on an insurance policy.

The insurance industry rule of thumb that a typical family will need 70% of salary for seven years in order to adjust for the financial consequences of a salary earner's death is known as which of the following estimation methods?

A contract stating that the annuitant will receive a constant amount of income over a certain period or for life is called a:

Stock life insurance companies are owned by their policyholders.

The prices of life insurance policies:

Because the premium payment period for a limited payment policy is shorter than that of a whole life policy, the annual premium is higher.

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the:

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

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