Question 1

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 2

A beneficiary is a person who:

Accepted Answer

A) acts as a trustee of your insurance policy. 
B) is a guardian of your children. 
C) acts on your behalf. 
D) is designated to receive life insurance proceeds. 
E) acts as an agent handling your insurance policy. 
A) acts as a trustee of your insurance policy. 
B) is a guardian of your children. 
C) acts on your behalf. 
D) is designated to receive life insurance proceeds. 
E) acts as an agent handling your insurance policy.

Question 3

Individuals and families purchase life insurance primarily to:

Accepted Answer

A) pay liability claims resulting from accidents. 
B) fill financial needs created by the loss of the breadwinner. 
C) fund lavish retirement vacations. 
D) keep up with people with a similar financial situation. 
E) make early retirement possiblE. 
A) pay liability claims resulting from accidents. 
B) fill financial needs created by the loss of the breadwinner. 
C) fund lavish retirement vacations. 
D) keep up with people with a similar financial situation. 
E) make early retirement possiblE.

Question 4

If you have no dependents and your wife earns as much as you do,you have very simple insurance needs.

Accepted Answer

A) True 
 B)False

Question 5

Accelerated benefits are life insurance policy proceeds paid to the policyholder who is terminally ill before he or she dies.

Accepted Answer

A) True 
 B)False

Question 6

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy.

Accepted Answer

A) 11 to 15 
B) 16 to 21 
C) 20 to 25 
D) 28 to 31 
E) 35 to 40 
A) 11 to 15 
B) 16 to 21 
C) 20 to 25 
D) 28 to 31 
E) 35 to 40

Question 7

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Accepted Answer

A) straight 
B) renewable 
C) convertible 
D) decreasing 
E) accelerated 
A) straight 
B) renewable 
C) convertible 
D) decreasing 
E) accelerated

Question 8

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes.What type of term life insurance does Renee likely have?

Accepted Answer

A) straight 
B) renewable 
C) convertible 
D) decreasing 
E) accelerated 
A) straight 
B) renewable 
C) convertible 
D) decreasing 
E) accelerated

Question 9

If your death would cause financial stress for your dependents,you should consider purchasing life insurance.

Accepted Answer

A) True 
 B)False

Question 10

The prices of life insurance policies:

Accepted Answer

A) vary considerably from policy to policy. 
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 from policy to policy. 
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 11

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

Accepted Answer

A) double indemnity. 
B) guaranteed insurability. 
C) an interest-adjusted index. 
D) the consumer price index. 
E) a present value index. 
A) double indemnity. 
B) guaranteed insurability. 
C) an interest-adjusted index. 
D) the consumer price index. 
E) a present value index.

Question 12

One important feature of a term life policy is its cash value.

Accepted Answer

A) True 
 B)False

Question 13

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

The naming of the beneficiary,the grace

Question 15

Which of the following was not a demographic used by the National Center for Health Statistics to analyze life expectancies for its life expectancy table released in 2006?

Accepted Answer

A) race 
B) occupation 
C) sex 
D) age 
E) gender 
A) race 
B) occupation 
C) sex 
D) age 
E) gender

Question 16

Group life and credit life insurance are generally permanent forms of insurance.

Accepted Answer

A) True 
 B)False

Question 17

John Camey has a life insurance policy that is tied to a separate stock fund.The cash value of his insurance policy depends on the value of this fund.He is guaranteed a minimum death benefit but the death benefit can be higher,depending on the value of the fund.What type of life insurance does John likely have?

Accepted Answer

A) ordinary whole life 
B) limited payment life 
C) variable life 
D) adjustable life 
E) universal life 
A) ordinary whole life 
B) limited payment life 
C) variable life 
D) adjustable life 
E) universal life

Question 18

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

Accepted Answer

Life insurance is a contract between an

Question 19

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Accepted Answer

A) True 
 B)False

Question 20

Industrial life insurance is the most popular form of insurance today.

Accepted Answer

A) True 
 B)False

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

A beneficiary is a person who:

Individuals and families purchase life insurance primarily to:

If you have no dependents and your wife earns as much as you do,you have very simple insurance needs.

Accelerated benefits are life insurance policy proceeds paid to the policyholder who is terminally ill before he or she dies.

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy.

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes.What type of term life insurance does Renee likely have?

If your death would cause financial stress for your dependents,you should consider purchasing life insurance.

The prices of life insurance policies:

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

One important feature of a term life policy is its cash value.

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

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

Which of the following was not a demographic used by the National Center for Health Statistics to analyze life expectancies for its life expectancy table released in 2006?

Group life and credit life insurance are generally permanent forms of insurance.

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

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Industrial life insurance is the most popular form of insurance today.

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

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

A beneficiary is a person who:

Individuals and families purchase life insurance primarily to:

If you have no dependents and your wife earns as much as you do,you have very simple insurance needs.

Accelerated benefits are life insurance policy proceeds paid to the policyholder who is terminally ill before he or she dies.

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy.

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes.What type of term life insurance does Renee likely have?

If your death would cause financial stress for your dependents,you should consider purchasing life insurance.

The prices of life insurance policies:

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

One important feature of a term life policy is its cash value.

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

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

Which of the following was not a demographic used by the National Center for Health Statistics to analyze life expectancies for its life expectancy table released in 2006?

Group life and credit life insurance are generally permanent forms of insurance.

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

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Industrial life insurance is the most popular form of insurance today.

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