Exam 12: Life Insurance

The cash values of a(an) ____________ life insurance policy fluctuate according to the yields earned by a separate fund, which can be a stock fund, a money market fund, or a long-term fund.

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Which type of life insurance is the least popular today?

Most insurance companies can determine how long a particular person will live.

If you have no dependents and your spouse earns as much as you do, you have very simple insurance needs.

The second-to-die option is paid when the first spouse dies.

Which of the following is (are) false?

When you purchase a variable life policy, the insurance company assumes the risk of poor investment performance.

One important feature of a whole life policy is the nonforfeiture clause.

The premium that is refunded to holders of a participating policy is called the policy dividend.

Most life insurance companies are mutuals.

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a(n) ____________ life insurance policy plan.

What are the steps in creating a plan to buy your life insurance?

Which of the following refer to permanent insurance?

Explain how a guaranteed insurability option works and why it is beneficial.

How frequently does the premium for a whole life policy change during the insured's life?

Nearly all mutual companies issue only nonparticipating policies.

It has been shown that there is a link between an individual's education level and their life expectancy.

What should you consider before you buy life insurance?

You probably have little or no need for life insurance if you are: