Exam 12: Life Insurance

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

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy without penalty.

The easy method of determining life insurance needs is based on the rule of thumb that a "typical family" will need about 70 percent of your salary for seven years.

One important feature of a whole life policy is the nonforfeiture clause,which prevents the forfeiture of accrued benefits if you choose to drop the policy.

A two-earner couple likely will have:

An important provision in every life insurance policy is the right to name your beneficiary.

The DINK method of determining life insurance needs recommends adding an additional insurance cushion if your spouse is:

The 2001 CSO Table separates the mortality experience by:

Which type of life insurance policy provides coverage from the beginning of the contract to maturity and guarantees payment of a specified sum to the insured,even if he or she is still living at the end of the contract period?

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

A beneficiary can be a spouse or child who:

Scott Cumbie wants to determine his life insurance need.What method would identify his insurance needs as a range between five and eight times his income?

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

A special form of the limited payment plan is the single-premium policy.In this type of contract,you make only one very large premium payment.

Which of the following does not refer to permanent insurance?

Life insurance proceeds may be used to provide a retirement income.

Your life insurance policy is valuable only if it:

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

Life insurance proceeds may be used to provide an education or income for children.

If your death would cause financial stress for your spouse or children,you should consider purchasing life insurance.