Question 1

Which type of life insurance policy requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Accepted Answer

A) Modified life policy 
B) Variable life policy 
C) Adjustable life policy 
D) Limited payment policy 
E) Endowment policy 
A) Modified life policy 
B) Variable life policy 
C) Adjustable life policy 
D) Limited payment policy 
E) Endowment policy

Question 2

Which of the following questions are important to consider when choosing an insurance agent?

Accepted Answer

A) Is your agent available when needed? 
B) Does your agent advise you to have a financial plan? 
C) Is your agent happy to answer questions? 
D) Does your agent keep up with changes in the insurance field? 
E) All of these are important to consider. 
A) Is your agent available when needed? 
B) Does your agent advise you to have a financial plan? 
C) Is your agent happy to answer questions? 
D) Does your agent keep up with changes in the insurance field? 
E) All of these are important to consider.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Single persons living alone usually have little or no need for life insurance.

Accepted Answer

A) True 
 B)False

Question 5

The most common type of permanent life insurance is called:

Accepted Answer

A) whole life. 
B) term life. 
C) universal life. 
D) modified life. 
E) variable life. 
A) whole life. 
B) term life. 
C) universal life. 
D) modified life. 
E) variable life.

Question 6

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

Accepted Answer

A) True 
 B)False

Question 7

List some of the provisions found in most life insurance policies.

Accepted Answer

The naming of the beneficiary,the grace

Question 8

Before you buy life insurance,you should determine whether you really need life insurance.

Accepted Answer

A) True 
 B)False

Question 9

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Some experts claim that credit life insurance policies are:

Accepted Answer

A) the nation's biggest rip-off. 
B) the best buys. 
C) useful for creditors and debtors alike. 
D) less expensive than term life insurance. 
E) an excellent investment. 
A) the nation's biggest rip-off. 
B) the best buys. 
C) useful for creditors and debtors alike. 
D) less expensive than term life insurance. 
E) an excellent investment.

Question 12

Which of the following is false?

Accepted Answer

A) Stock companies generally sell nonparticipating policies. 
B) A participating policy usually has a somewhat higher premium than a comparable nonparticipating policy. 
C) Mutual companies generally sell participating policies. 
D) You can expect to receive a policy dividend from a stock company. 
E) Part of the premium is refunded to the policyholder in a participating policy. 
A) Stock companies generally sell nonparticipating policies. 
B) A participating policy usually has a somewhat higher premium than a comparable nonparticipating policy. 
C) Mutual companies generally sell participating policies. 
D) You can expect to receive a policy dividend from a stock company. 
E) Part of the premium is refunded to the policyholder in a participating policy.

Question 13

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Accepted Answer

A) True 
 B)False

Question 14

What are the two types of life insurance companies? Explain the basic features of each type.

Accepted Answer

There are two types of life insurance co

Question 15

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

Accepted Answer

A) True 
 B)False

Question 16

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

Accepted Answer

A) 20 
B) 40 
C) 50 
D) 70 
E) 80 
A) 20 
B) 40 
C) 50 
D) 70 
E) 80

Question 17

What are the six methods of estimating your life insurance needs? Explain the basic principle of each method.

Accepted Answer

In determining your life insurance needs

Question 18

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

Accepted Answer

A) www.lifehexists.com 
B) www.humanlifecalculator.com 
C) www.lifecalculator.com 
D) www.kiplinger.com/insurance 
E) www.familyneeds.com 
A) www.lifehexists.com 
B) www.humanlifecalculator.com 
C) www.lifecalculator.com 
D) www.kiplinger.com/insurance 
E) www.familyneeds.com

Question 19

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

Accepted Answer

A) rider. 
B) waiver of premium. 
C) automatic premium loan. 
D) beneficiary. 
E) incontestability clause. 
A) rider. 
B) waiver of premium. 
C) automatic premium loan. 
D) beneficiary. 
E) incontestability clause.

Question 20

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

Accepted Answer

A) a 30-year-old female has the highest probability of dying. 
B) a 30-year-old female has the highest probability of living. 
C) females alive at 30 years of age are expected to live an additional 52 years on average. 
D) 52.0 is the average age at which all females, age 30, will die. 
E) very few 30-year-old females will live past the age of 82. 
A) a 30-year-old female has the highest probability of dying. 
B) a 30-year-old female has the highest probability of living. 
C) females alive at 30 years of age are expected to live an additional 52 years on average. 
D) 52.0 is the average age at which all females, age 30, will die. 
E) very few 30-year-old females will live past the age of 82.

Which type of life insurance policy requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Which of the following questions are important to consider when choosing an insurance agent?

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

Single persons living alone usually have little or no need for life insurance.

The most common type of permanent life insurance is called:

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

List some of the provisions found in most life insurance policies.

Before you buy life insurance,you should determine whether you really need life insurance.

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

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

Some experts claim that credit life insurance policies are:

Which of the following is false?

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

What are the two types of life insurance companies? Explain the basic features of each type.

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

What are the six methods of estimating your life insurance needs? Explain the basic principle of each method.

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

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

Which type of life insurance policy requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Which of the following questions are important to consider when choosing an insurance agent?

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

Single persons living alone usually have little or no need for life insurance.

The most common type of permanent life insurance is called:

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

List some of the provisions found in most life insurance policies.

Before you buy life insurance,you should determine whether you really need life insurance.

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

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

Some experts claim that credit life insurance policies are:

Which of the following is false?

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

What are the two types of life insurance companies? Explain the basic features of each type.

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

What are the six methods of estimating your life insurance needs? Explain the basic principle of each method.

Which of the following is a helpful website with an online calculator to estimate life insurance needs?

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a:

The life expectancy of a female at the age of 30 is 52.0 years.It means that:

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