Question 1

The Multiple of Income method of determining life insurance needs:

Accepted Answer

A) assumes you have only two children. 
B) assumes your spouse does not work. 
C) assumes your insurance needs are complex. 
D) uses your annual income as the sole factor. 
E) assumes your spouse is in an occupation with an uncertain future. 
A) assumes you have only two children. 
B) assumes your spouse does not work. 
C) assumes your insurance needs are complex. 
D) uses your annual income as the sole factor. 
E) assumes your spouse is in an occupation with an uncertain future.

Question 2

Consumer awareness of life insurance has changed little over the years.

Accepted Answer

A) True 
 B)False

Question 3

How frequently does the premium for a whole life policy change during the insured's life?

Accepted Answer

A) Every year 
B) Every two years 
C) Every five years 
D) Every 10 years 
E) It never changes 
A) Every year 
B) Every two years 
C) Every five years 
D) Every 10 years 
E) It never changes

Question 4

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a ____________ life insurance policy.

Accepted Answer

A) individual 
B) whole 
C) large number 
D) permanent 
E) group 
A) individual 
B) whole 
C) large number 
D) permanent 
E) group

Question 5

A life insurance policy puts a price on the life of the insured person.

Accepted Answer

A) True 
 B)False

Question 6

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

Accepted Answer

A) Straight 
B) Renewable 
C) Convertible 
D) Decreasing 
E) Return-of-premium 
A) Straight 
B) Renewable 
C) Convertible 
D) Decreasing 
E) Return-of-premium

Question 7

Under the life income option,payments are made to the beneficiary for as long as he or she lives.

Accepted Answer

A) True 
 B)False

Question 8

Your annual income is $100,000.You have a spouse,two kids,a dog and a mortgage - a typical family.What is your life insurance need based on the easy method?

Accepted Answer

A) $310,000 
B) $490,000 
C) $700,000 
D) $1,000,000 
E) $1,200,000 
A) $310,000 
B) $490,000 
C) $700,000 
D) $1,000,000 
E) $1,200,000

Question 9

Universal life,variable life,and adjustable life are types of term life insurance.

Accepted Answer

A) True 
 B)False

Question 10

What should you consider before you buy life insurance?

Accepted Answer

A) Your past sources of income 
B) Your cost of health insurance 
C) Your vacation benefits 
D) Your accumulated sick leave 
E) Your savings 
A) Your past sources of income 
B) Your cost of health insurance 
C) Your vacation benefits 
D) Your accumulated sick leave 
E) Your savings

Question 11

Which of the following offers many features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance?

Accepted Answer

A) whole life insurance. 
B) term life insurance. 
C) modified life insurance. 
D) single-premium insurance. 
E) a variable annuity. 
A) whole life insurance. 
B) term life insurance. 
C) modified life insurance. 
D) single-premium insurance. 
E) a variable annuity.

Question 12

Using the "nonworking" spouse method,what should be the life insurance needs for a family whose youngest child is 7 years old?

Accepted Answer

A) $50,000 
B) $70,000 
C) $90,000 
D) $110,000 
E) $140,000 
A) $50,000 
B) $70,000 
C) $90,000 
D) $110,000 
E) $140,000

Question 13

What is life insurance? What is its purpose and principle?

Accepted Answer

Life insurance is a contract between an

The Multiple of Income method of determining life insurance needs:

Consumer awareness of life insurance has changed little over the years.

How frequently does the premium for a whole life policy change during the insured's life?

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a ____________ life insurance policy.

A life insurance policy puts a price on the life of the insured person.

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

Under the life income option,payments are made to the beneficiary for as long as he or she lives.

Your annual income is $100,000.You have a spouse,two kids,a dog and a mortgage - a typical family.What is your life insurance need based on the easy method?

Universal life,variable life,and adjustable life are types of term life insurance.

What should you consider before you buy life insurance?

Which of the following offers many features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance?

Using the "nonworking" spouse method,what should be the life insurance needs for a family whose youngest child is 7 years old?

What is life insurance? What is its purpose and principle?

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

The Multiple of Income method of determining life insurance needs:

Consumer awareness of life insurance has changed little over the years.

How frequently does the premium for a whole life policy change during the insured's life?

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a ____________ life insurance policy.

A life insurance policy puts a price on the life of the insured person.

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

Under the life income option,payments are made to the beneficiary for as long as he or she lives.

Your annual income is $100,000.You have a spouse,two kids,a dog and a mortgage - a typical family.What is your life insurance need based on the easy method?

Universal life,variable life,and adjustable life are types of term life insurance.

What should you consider before you buy life insurance?

Which of the following offers many features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance?

Using the "nonworking" spouse method,what should be the life insurance needs for a family whose youngest child is 7 years old?

What is life insurance? What is its purpose and principle?

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