Question 1

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

Accepted Answer

A) True 
 B)False

Question 2

When buying life insurance,you should:

Accepted Answer

A) buy from an unlicensed company. 
B) buy more life insurance than you need. 
C) select an agent who is incompetent. 
D) ask about lower premium rates for nonsmokers. 
E) not worry about reading and understanding your policy. 
A) buy from an unlicensed company. 
B) buy more life insurance than you need. 
C) select an agent who is incompetent. 
D) ask about lower premium rates for nonsmokers. 
E) not worry about reading and understanding your policy.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Using the Multiple of Income Method to estimate insurance needs,what amount of insurance is needed if your current income is $100,000?

Accepted Answer

A) 100,000 
B) 100,000-300,000 
C) 500,000-800,000 
D) 600,000-900,000 
E) over 1,000,000 
A) 100,000 
B) 100,000-300,000 
C) 500,000-800,000 
D) 600,000-900,000 
E) over 1,000,000

Question 5

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 6

In a participating policy,a part of the premium is refunded to the policyholder annually.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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

Accepted Answer

A) True 
 B)False

Question 9

Nearly all mutual companies issue only nonparticipating policies.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The premium for a whole life policy increases with your age.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 wage-earner's death is known as which of the following estimation methods?

Accepted Answer

A) Nonworking spouse 
B) Easy method 
C) DINK method 
D) Family need 
E) Soccer mom 
A) Nonworking spouse 
B) Easy method 
C) DINK method 
D) Family need 
E) Soccer mom

Question 15

Using the Multiple of Income Method to estimate insurance needs,what is the minimum amount of insurance needed for Susan Smith if her current income is $50,000?

Accepted Answer

A) $50,000 
B) $100,000 
C) $150,000 
D) $200,000 
E) $250,000 
A) $50,000 
B) $100,000 
C) $150,000 
D) $200,000 
E) $250,000

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) Whole life 
B) Ordinary life 
C) Universal life 
D) Adjustable life 
E) Variable life 
A) Whole life 
B) Ordinary life 
C) Universal life 
D) Adjustable life 
E) Variable life

Question 18

You can purchase life insurance from two types of life insurance companies.

Accepted Answer

A) True 
 B)False

Question 19

An annuity is a financial contract written by an insurance company to provide you with a regular income.

Accepted Answer

A) True 
 B)False

Question 20

Who has the greatest need for life insurance?

Accepted Answer

A) Households with small children 
B) Singles living alone 
C) Singles living with parents 
D) Dual income couple 
E) Retired person 
A) Households with small children 
B) Singles living alone 
C) Singles living with parents 
D) Dual income couple 
E) Retired person

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

When buying life insurance,you should:

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

Using the Multiple of Income Method to estimate insurance needs,what amount of insurance is needed if your current income is $100,000?

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

In a participating policy,a part of the premium is refunded to the policyholder annually.

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

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

Nearly all mutual companies issue only nonparticipating policies.

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

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

The premium for a whole life policy increases with your age.

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

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 wage-earner's death is known as which of the following estimation methods?

Using the Multiple of Income Method to estimate insurance needs,what is the minimum amount of insurance needed for Susan Smith if her current income is $50,000?

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

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

You can purchase life insurance from two types of life insurance companies.

An annuity is a financial contract written by an insurance company to provide you with a regular income.

Who has the greatest need for life insurance?

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 Stock

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

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

When buying life insurance,you should:

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

Using the Multiple of Income Method to estimate insurance needs,what amount of insurance is needed if your current income is $100,000?

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

In a participating policy,a part of the premium is refunded to the policyholder annually.

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

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

Nearly all mutual companies issue only nonparticipating policies.

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

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

The premium for a whole life policy increases with your age.

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

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 wage-earner's death is known as which of the following estimation methods?

Using the Multiple of Income Method to estimate insurance needs,what is the minimum amount of insurance needed for Susan Smith if her current income is $50,000?

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

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

You can purchase life insurance from two types of life insurance companies.

An annuity is a financial contract written by an insurance company to provide you with a regular income.

Who has the greatest need for life insurance?

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters