Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 salary 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 4

The cash values of a(an)____________ life insurance policy fluctuate according to the yields earned by a separate fund,which can be a stock fund,a money market fund,or a long-term fund.

Accepted Answer

A) modified 
B) variable 
C) adjustable 
D) ordinary 
E) temporary 
A) modified 
B) variable 
C) adjustable 
D) ordinary 
E) temporary

Question 5

Which of the following names refer to permanent insurance?

Accepted Answer

A) whole life 
B) straight life 
C) ordinary life 
D) cash-value life 
E) all of the names listed in the other answers 
A) whole life 
B) straight life 
C) ordinary life 
D) cash-value life 
E) all of the names listed in the other answers

Question 6

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 7

Who is likely to have the least need for life insurance?

Accepted Answer

A) married couple,only one spouse working,with three small children 
B) single person living with parents 
C) married couple with solid jobs and no dependents 
D) married working couple with one child 
E) single person about to be married 
A) married couple,only one spouse working,with three small children 
B) single person living with parents 
C) married couple with solid jobs and no dependents 
D) married working couple with one child 
E) single person about to be married

Question 8

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 9

In planning your insurance program,you should:

Accepted Answer

A) seek advice from a competent financial adviser. 
B) determine what insurance is required. 
C) consider Social Security and other group insurance. 
D) decide what type of insurance best meets your needs. 
E) consider all of the factors listed in the other answers. 
A) seek advice from a competent financial adviser. 
B) determine what insurance is required. 
C) consider Social Security and other group insurance. 
D) decide what type of insurance best meets your needs. 
E) consider all of the factors listed in the other answers.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

In determining your life insurance needs

Question 12

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) The premiums remain constant. 
B) The policy builds cash value. 
C) Protection is for a specified period of time. 
D) It usually is more expensive than whole life insurance. 
E) The investment performance varies with the stock market. 
A) The premiums remain constant. 
B) The policy builds cash value. 
C) Protection is for a specified period of time. 
D) It usually is more expensive than whole life insurance. 
E) The investment performance varies with the stock market.

Question 15

Insurance experts have estimated that extra costs of up to $_____________ a year may be required to replace the services of a homemaker in a family with small children.

Accepted Answer

A) 3,000 
B) 6,000 
C) 10,000 
D) 12,000 
E) 15,000 
A) 3,000 
B) 6,000 
C) 10,000 
D) 12,000 
E) 15,000

Question 16

Your life insurance policy is valuable only if it:

Accepted Answer

A) meets your objectives. 
B) makes you rich. 
C) makes your beneficiaries rich. 
D) serves as collateral for a loan. 
E) pays you at least 7.5 percent interest. 
A) meets your objectives. 
B) makes you rich. 
C) makes your beneficiaries rich. 
D) serves as collateral for a loan. 
E) pays you at least 7.5 percent interest.

Question 17

Universal life is a whole life policy that combines term insurance and investment elements.

Accepted Answer

A) True 
 B)False

Question 18

Although it is impossible to put a price on the life of an insured person,most adults probably are covered by some life insurance.

Accepted Answer

A) True 
 B)False

Question 19

A two-earner couple likely will have:

Accepted Answer

A) the greatest need for life insurance. 
B) no need for life insurance. 
C) a moderate need for life insurance,especially if they have a mortgage. 
D) the greatest need for an annuity. 
E) the exact same life insurance needs as all other two-earner couples. 
A) the greatest need for life insurance. 
B) no need for life insurance. 
C) a moderate need for life insurance,especially if they have a mortgage. 
D) the greatest need for an annuity. 
E) the exact same life insurance needs as all other two-earner couples.

Question 20

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.

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

Fundamentally,group insurance is ____________ insurance.

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

The cash values of a(an)____________ life insurance policy fluctuate according to the yields earned by a separate fund,which can be a stock fund,a money market fund,or a long-term fund.

Which of the following names refer to permanent insurance?

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

Who is likely to have the least need for life insurance?

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

In planning your insurance program,you should:

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

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

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Some experts claim that credit life insurance policies are:

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

Insurance experts have estimated that extra costs of up to $_____________ a year may be required to replace the services of a homemaker in a family with small children.

Your life insurance policy is valuable only if it:

Universal life is a whole life policy that combines term insurance and investment elements.

Although it is impossible to put a price on the life of an insured person,most adults probably are covered by some life insurance.

A two-earner couple likely will have:

The most common type of permanent life insurance is called:

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 Stocks

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

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

Fundamentally,group insurance is ____________ insurance.

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

The cash values of a(an)____________ life insurance policy fluctuate according to the yields earned by a separate fund,which can be a stock fund,a money market fund,or a long-term fund.

Which of the following names refer to permanent insurance?

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

Who is likely to have the least need for life insurance?

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

In planning your insurance program,you should:

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

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

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Some experts claim that credit life insurance policies are:

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

Insurance experts have estimated that extra costs of up to $_____________ a year may be required to replace the services of a homemaker in a family with small children.

Your life insurance policy is valuable only if it:

Universal life is a whole life policy that combines term insurance and investment elements.

Although it is impossible to put a price on the life of an insured person,most adults probably are covered by some life insurance.

A two-earner couple likely will have:

The most common type of permanent life insurance is called:

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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Starting Early: Retirement Planning

Estate Planning

Filters