Question 1

Term insurance is a basic, "no frills" form of life insurance and is the best value for most customers.

Accepted Answer

A) True 
 B)False

Question 2

A beneficiary is a person designated to receive something such as life insurance proceeds, from the insured.

Accepted Answer

A) True 
 B)False

Question 3

In planning your insurance program, you should:

Accepted Answer

A)  seek advice from a competent financial adviser. 
B)  determine what insurance is required. 
C)  consider Social Security and other group insurance. 
D)  decide what type of insurance best meets your needs. 
E)  consider all of the factors listed in the other answers. 
A)  seek advice from a competent financial adviser. 
B)  determine what insurance is required. 
C)  consider Social Security and other group insurance. 
D)  decide what type of insurance best meets your needs. 
E)  consider all of the factors listed in the other answers.

Question 4

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter. This alteration has most likely been done by attaching a(n) ____ to the policy.

Accepted Answer

A)  accelerated benefits clause 
B)  policy dividend 
C)  guaranteed insurability clause 
D)  second-to-die rider 
E)  double indemnity rider 
A)  accelerated benefits clause 
B)  policy dividend 
C)  guaranteed insurability clause 
D)  second-to-die rider 
E)  double indemnity rider

Question 5

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Accepted Answer

A) True 
 B)False

Question 6

When buying life insurance, as a rule, you should deal with companies rated superior or excellent by the big rating agencies.

Accepted Answer

A) True 
 B)False

Question 7

John Camey has a life insurance policy that is tied to a separate stock fund. The cash value of his insurance policy depends on the value of this fund. He is guaranteed a minimum death benefit but the death benefit can be higher, depending on the value of the fund. What type of life insurance does John likely have?

Accepted Answer

A)  Ordinary whole life 
B)  Limited payment life 
C)  Variable life 
D)  Adjustable life 
E)  Universal life 
A)  Ordinary whole life 
B)  Limited payment life 
C)  Variable life 
D)  Adjustable life 
E)  Universal life

Term insurance is a basic, "no frills" form of life insurance and is the best value for most customers.

A beneficiary is a person designated to receive something such as life insurance proceeds, from the insured.

In planning your insurance program, you should:

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter. This alteration has most likely been done by attaching a(n) ____ to the policy.

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

When buying life insurance, as a rule, you should deal with companies rated superior or excellent by the big rating agencies.

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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Exam 12: Life Insurance

Term insurance is a basic, "no frills" form of life insurance and is the best value for most customers.

A beneficiary is a person designated to receive something such as life insurance proceeds, from the insured.

In planning your insurance program, you should:

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter. This alteration has most likely been done by attaching a(n) ____ to the policy.

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

When buying life insurance, as a rule, you should deal with companies rated superior or excellent by the big rating agencies.

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