Question 1

Permanent insurance can be limited payment,variable,adjustable,or universal life insurance.

Accepted Answer

A) True 
 B)False

Question 2

What should you consider before you buy life insurance?

Accepted Answer

A) your present and future sources of income 
B) your savings 
C) employer's group life insurance 
D) pension benefits 
E) all of the factors listed in the other answers 
A) your present and future sources of income 
B) your savings 
C) employer's group life insurance 
D) pension benefits 
E) all of the factors listed in the other answers

Question 3

The amount of your life insurance premium for each $1,000 of coverage depends primarily on the age at which you purchase the insurance.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

A contract stating that the annuitant will receive a constant amount of income over a certain period or for life is called a:

Accepted Answer

A) flexible annuity. 
B) fixed annuity. 
C) variable annuity. 
D) ERISA annuity. 
E) participating annuity. 
A) flexible annuity. 
B) fixed annuity. 
C) variable annuity. 
D) ERISA annuity. 
E) participating annuity.

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

Decreasing term life insurance is no longer available.

Accepted Answer

A) True 
 B)False

Question 10

Term life insurance premiums decrease as you get older.

Accepted Answer

A) True 
 B)False

Question 11

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter.This alteration has most likely been done by attaching a(n)____ to the policy.

Accepted Answer

A) accelerated benefits clause 
B) policy dividend 
C) guaranteed insurability clause 
D) second-to-die rider 
E) double indemnity rider 
A) accelerated benefits clause 
B) policy dividend 
C) guaranteed insurability clause 
D) second-to-die rider 
E) double indemnity rider

Question 12

Which statement is correct regarding mutual insurance companies?

Accepted Answer

A) Mutual insurance companies have stockholders. 
B) Nearly all mutual companies issue only nonparticipating policies. 
C) Premiums are lower than those offered by stock companies. 
D) Mutual companies do not declare policy dividends. 
E) A mutual company refunds part of the premium to the policyholders. 
A) Mutual insurance companies have stockholders. 
B) Nearly all mutual companies issue only nonparticipating policies. 
C) Premiums are lower than those offered by stock companies. 
D) Mutual companies do not declare policy dividends. 
E) A mutual company refunds part of the premium to the policyholders.

Question 13

Life insurance proceeds may provide a retirement income.

Accepted Answer

A) True 
 B)False

Question 14

A suicide clause means that the insurance company:

Accepted Answer

A) can cancel the policy if suicide is proven. 
B) will pay the death benefit equal to the amount of the premium paid,if the insured dies during the first two years that the policy is in force. 
C) will pay only half the death benefits if the insured commits suicide. 
D) automatically pays the premium out of the policy's cash value. 
E) will not pay any death benefits is suicide is suspected. 
A) can cancel the policy if suicide is proven. 
B) will pay the death benefit equal to the amount of the premium paid,if the insured dies during the first two years that the policy is in force. 
C) will pay only half the death benefits if the insured commits suicide. 
D) automatically pays the premium out of the policy's cash value. 
E) will not pay any death benefits is suicide is suspected.

Question 15

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n):

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 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

Your first step in determining a life insurance program should be to:

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 19

What are the steps in creating a plan to buy your life insurance?

Accepted Answer

Before buying life insurance,you should

Question 20

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

Permanent insurance can be limited payment,variable,adjustable,or universal life insurance.

What should you consider before you buy life insurance?

The amount of your life insurance premium for each $1,000 of coverage depends primarily on the age at which you purchase the insurance.

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

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

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

A contract stating that the annuitant will receive a constant amount of income over a certain period or for life is called a:

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

Decreasing term life insurance is no longer available.

Term life insurance premiums decrease as you get older.

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter.This alteration has most likely been done by attaching a(n)____ to the policy.

Which statement is correct regarding mutual insurance companies?

Life insurance proceeds may provide a retirement income.

A suicide clause means that the insurance company:

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n):

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

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

Your first step in determining a life insurance program should be to:

What are the steps in creating a plan to buy your life insurance?

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

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

Exam 12: Life Insurance

Permanent insurance can be limited payment,variable,adjustable,or universal life insurance.

What should you consider before you buy life insurance?

The amount of your life insurance premium for each $1,000 of coverage depends primarily on the age at which you purchase the insurance.

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

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

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

A contract stating that the annuitant will receive a constant amount of income over a certain period or for life is called a:

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

Decreasing term life insurance is no longer available.

Term life insurance premiums decrease as you get older.

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter.This alteration has most likely been done by attaching a(n)____ to the policy.

Which statement is correct regarding mutual insurance companies?

Life insurance proceeds may provide a retirement income.

A suicide clause means that the insurance company:

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n):

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

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

Your first step in determining a life insurance program should be to:

What are the steps in creating a plan to buy your life insurance?

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

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