Question 1

Which statement is correct about whole life insurance?

Accepted Answer

A) At first, it is cheaper than term life. 
B) It builds up cash value. 
C) The premiums increase with your age. 
D) It is the best choice for people who plan to keep the policy for a short term. 
E) It is the same thing as term life insurance. 
A) At first, it is cheaper than term life. 
B) It builds up cash value. 
C) The premiums increase with your age. 
D) It is the best choice for people who plan to keep the policy for a short term. 
E) It is the same thing as term life insurance.

Question 2

Jerry Lewis is thinking about purchasing some life insurance.He goes to a company that is owned by shareholders.What type of life insurance company has he visited?

Accepted Answer

A) Stock 
B) Debt 
C) Mutual 
D) Exclusionary 
E) Cooperative 
A) Stock 
B) Debt 
C) Mutual 
D) Exclusionary 
E) Cooperative

Question 3

Two-earner couples may have a moderate need for life insurance,especially if they have a mortgage or other large debts.

Accepted Answer

A) True 
 B)False

Question 4

The coverage of term insurance ends at the conclusion of the term,but you can continue it if you have a renewability option.

Accepted Answer

A) True 
 B)False

Question 5

Fundamentally,group insurance is ____________ insurance.

Accepted Answer

A) term 
B) whole life 
C) ordinary life 
D) permanent 
E) universal life 
A) term 
B) whole life 
C) ordinary life 
D) permanent 
E) universal life

Question 6

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Accepted Answer

A) True 
 B)False

Question 7

Which type of life insurance is the least popular and its appeal continues to drop?

Accepted Answer

A) Endowment life insurance 
B) Credit life insurance 
C) Group life insurance 
D) Industrial life insurance 
E) Universal life insurance 
A) Endowment life insurance 
B) Credit life insurance 
C) Group life insurance 
D) Industrial life insurance 
E) Universal life insurance

Question 8

If life insurance proceeds are left with the company,the company acts as trustee and pays the interest to the beneficiary.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Most American families face a substantial loss when one spouse dies unexpectedly.

Accepted Answer

A) True 
 B)False

Question 11

Even though it is expensive,you should add the accidental death benefit to your life insurance policy,because your chances of dying in the exact manner stated in the policy are very high.

Accepted Answer

A) True 
 B)False

Question 12

Using the "nonworking" spouse method,what should be the life insurance need for a family whose youngest child is 10 years old?

Accepted Answer

A) $30,000 
B) $50,000 
C) $80,000 
D) $100,000 
E) $180,000 
A) $30,000 
B) $50,000 
C) $80,000 
D) $100,000 
E) $180,000

Question 13

The prices of life insurance policies:

Accepted Answer

A) vary considerably among life insurance companies. 
B) are relatively the same for all policies. 
C) are higher for females than males. 
D) have remained constant over time. 
E) are set by the government here in the United States. 
A) vary considerably among life insurance companies. 
B) are relatively the same for all policies. 
C) are higher for females than males. 
D) have remained constant over time. 
E) are set by the government here in the United States.

Question 14

A special form of the limited payment plan is the ____________ premium policy.

Accepted Answer

A) double 
B) simple 
C) single 
D) compound 
E) equitable 
A) double 
B) simple 
C) single 
D) compound 
E) equitable

Question 15

The DINK method of determining life insurance needs assumes that your spouse will continue to work after your death.

Accepted Answer

A) True 
 B)False

Question 16

Tim Bridges has a life insurance policy where he makes payments of $265 per year until he reaches the age of 65.His policy is then 'paid up' for life.His beneficiaries will receive the face value upon his death.What type of life insurance policy does Tim likely have?

Accepted Answer

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

Question 17

After determining you need life insurance,you should then:

Accepted Answer

A) consult a local insurance company agent. 
B) buy as much life insurance as you can afford. 
C) estimate your life insurance requirements. 
D) determine your life insurance objectives. 
E) evaluate the ratings of the insurance company. 
A) consult a local insurance company agent. 
B) buy as much life insurance as you can afford. 
C) estimate your life insurance requirements. 
D) determine your life insurance objectives. 
E) evaluate the ratings of the insurance company.

Question 18

After you buy new life insurance,you have a "free look" period of ______ days.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 40 
E) 50 
A) 10 
B) 20 
C) 30 
D) 40 
E) 50

Question 19

Decreasing term life insurance is no longer available.

Accepted Answer

A) True 
 B)False

Question 20

How many different types of life insurance companies are there?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) 5 
A) 1 
B) 2 
C) 3 
D) 4 
E) 5

Which statement is correct about whole life insurance?

Jerry Lewis is thinking about purchasing some life insurance.He goes to a company that is owned by shareholders.What type of life insurance company has he visited?

Two-earner couples may have a moderate need for life insurance,especially if they have a mortgage or other large debts.

The coverage of term insurance ends at the conclusion of the term,but you can continue it if you have a renewability option.

Fundamentally,group insurance is ____________ insurance.

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Which type of life insurance is the least popular and its appeal continues to drop?

If life insurance proceeds are left with the company,the company acts as trustee and pays the interest to the beneficiary.

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

Most American families face a substantial loss when one spouse dies unexpectedly.

Even though it is expensive,you should add the accidental death benefit to your life insurance policy,because your chances of dying in the exact manner stated in the policy are very high.

Using the "nonworking" spouse method,what should be the life insurance need for a family whose youngest child is 10 years old?

The prices of life insurance policies:

A special form of the limited payment plan is the ____________ premium policy.

The DINK method of determining life insurance needs assumes that your spouse will continue to work after your death.

Tim Bridges has a life insurance policy where he makes payments of $265 per year until he reaches the age of 65.His policy is then 'paid up' for life.His beneficiaries will receive the face value upon his death.What type of life insurance policy does Tim likely have?

After determining you need life insurance,you should then:

After you buy new life insurance,you have a "free look" period of ______ days.

Decreasing term life insurance is no longer available.

How many different types of life insurance companies are there?

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

Exam 12: Life Insurance

Which statement is correct about whole life insurance?

Jerry Lewis is thinking about purchasing some life insurance.He goes to a company that is owned by shareholders.What type of life insurance company has he visited?

Two-earner couples may have a moderate need for life insurance,especially if they have a mortgage or other large debts.

The coverage of term insurance ends at the conclusion of the term,but you can continue it if you have a renewability option.

Fundamentally,group insurance is ____________ insurance.

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Which type of life insurance is the least popular and its appeal continues to drop?

If life insurance proceeds are left with the company,the company acts as trustee and pays the interest to the beneficiary.

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

Most American families face a substantial loss when one spouse dies unexpectedly.

Even though it is expensive,you should add the accidental death benefit to your life insurance policy,because your chances of dying in the exact manner stated in the policy are very high.

Using the "nonworking" spouse method,what should be the life insurance need for a family whose youngest child is 10 years old?

The prices of life insurance policies:

A special form of the limited payment plan is the ____________ premium policy.

The DINK method of determining life insurance needs assumes that your spouse will continue to work after your death.

Tim Bridges has a life insurance policy where he makes payments of $265 per year until he reaches the age of 65.His policy is then 'paid up' for life.His beneficiaries will receive the face value upon his death.What type of life insurance policy does Tim likely have?

After determining you need life insurance,you should then:

After you buy new life insurance,you have a "free look" period of ______ days.

Decreasing term life insurance is no longer available.

How many different types of life insurance companies are there?

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