Question 1

Most insurance companies can determine how long a particular person will live.

Accepted Answer

A) True 
 B)False

Question 2

Jeff Willis has five kids and more debt than the average family.What method would probably be the best method for him to use to calculate his insurance needs?

Accepted Answer

A) easy method 
B) DINK method 
C) nonworking spouse method 
D) family need method 
E) soccer mom method 
A) easy method 
B) DINK method 
C) nonworking spouse method 
D) family need method 
E) soccer mom method

Question 3

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 4

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 5

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 6

Even though it is expensive,you should add the accidental death benefit to any life insurance policy you purchase.

Accepted Answer

A) True 
 B)False

Question 7

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim 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 8

Which statement is correct about whole life insurance?

Accepted Answer

A) 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 most people. 
E) It is the same thing as term life insurancE. 
A) 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 most people. 
E) It is the same thing as term life insurancE.

Question 9

Francesca Brown has a life insurance policy that provides her with protection for the next five years.However,she can get five more years of protection at the end of this term without having to have a medical examination because she will be less than 70 years old at that time.Her premiums will rise during each five-year period.What type of term life insurance does Francesca 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 10

Households with small children most often have the greatest need for life insurance.

Accepted Answer

A) True 
 B)False

Question 11

The easy method of determining life insurance requirements assumes that your family is:

Accepted Answer

A) rich. 
B) poor. 
C) typical. 
D) young. 
E) old. 
A) rich. 
B) poor. 
C) typical. 
D) young. 
E) old.

Question 12

Your annual income is $50,000.What is your life insurance need based on the easy method?

Accepted Answer

A) $245,000. 
B) $300,000. 
C) $345,000. 
D) $400,000. 
E) $450,000. 
A) $245,000. 
B) $300,000. 
C) $345,000. 
D) $400,000. 
E) $450,000.

Question 13

The life expectancy of a female at the age of 30 is 47.65 years.It means that:

Accepted Answer

A) a 30-year-old female has the highest probability of dying. 
B) a 30-year-old female has the highest probability of living. 
C) females alive at 30 years of age have an average number of 47.65 years still left to live. 
D) 47.65 is the average age at which all females,age 30,will die. 
E) very few 30-year-old females will live past the age of 77. 
A) a 30-year-old female has the highest probability of dying. 
B) a 30-year-old female has the highest probability of living. 
C) females alive at 30 years of age have an average number of 47.65 years still left to live. 
D) 47.65 is the average age at which all females,age 30,will die. 
E) very few 30-year-old females will live past the age of 77.

Question 14

Which type of life insurance plan requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Accepted Answer

A) modified life policy 
B) variable life policy 
C) adjustable life policy 
D) limited payment policy 
E) endowment policy 
A) modified life policy 
B) variable life policy 
C) adjustable life policy 
D) limited payment policy 
E) endowment policy

Question 15

Which type of life insurance policy combines term insurance and investment elements?

Accepted Answer

A) whole life 
B) ordinary life 
C) universal life 
D) adjustable life 
E) extended life 
A) whole life 
B) ordinary life 
C) universal life 
D) adjustable life 
E) extended life

Question 16

Life insurance is available from a wide range of private and public sources.

Accepted Answer

A) True 
 B)False

Question 17

Subject to certain minimums,which life insurance is designed to let you pay premiums at any time in virtually any amount?

Accepted Answer

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

Question 18

A beneficiary is a person designated to receive something such as life insurance proceeds,from the insured.

Accepted Answer

A) True 
 B)False

Question 19

Life insurance premiums are determined basically by the:

Accepted Answer

A) forces of supply and demand. 
B) insurance division of the federal government. 
C) forces of competition. 
D) use of mortality tables. 
E) guesswork of insurance executives. 
A) forces of supply and demand. 
B) insurance division of the federal government. 
C) forces of competition. 
D) use of mortality tables. 
E) guesswork of insurance executives.

Question 20

A prime reason for buying an annuity is to:

Accepted Answer

A) save money for a college education. 
B) start a new business. 
C) accumulate funds to invest in stocks. 
D) give you retirement income for the rest of your life. 
E) get rich quick. 
A) save money for a college education. 
B) start a new business. 
C) accumulate funds to invest in stocks. 
D) give you retirement income for the rest of your life. 
E) get rich quick.

Most insurance companies can determine how long a particular person will live.

Jeff Willis has five kids and more debt than the average family.What method would probably be the best method for him to use to calculate his insurance needs?

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

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?

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

Even though it is expensive,you should add the accidental death benefit to any life insurance policy you purchase.

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

Which statement is correct about whole life insurance?

Households with small children most often have the greatest need for life insurance.

The easy method of determining life insurance requirements assumes that your family is:

Your annual income is $50,000.What is your life insurance need based on the easy method?

The life expectancy of a female at the age of 30 is 47.65 years.It means that:

Which type of life insurance plan requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Which type of life insurance policy combines term insurance and investment elements?

Life insurance is available from a wide range of private and public sources.

Subject to certain minimums,which life insurance is designed to let you pay premiums at any time in virtually any amount?

A beneficiary is a person designated to receive something such as life insurance proceeds,from the insured.

Life insurance premiums are determined basically by the:

A prime reason for buying an annuity is to:

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

Most insurance companies can determine how long a particular person will live.

Jeff Willis has five kids and more debt than the average family.What method would probably be the best method for him to use to calculate his insurance needs?

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

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?

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

Even though it is expensive,you should add the accidental death benefit to any life insurance policy you purchase.

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

Which statement is correct about whole life insurance?

Households with small children most often have the greatest need for life insurance.

The easy method of determining life insurance requirements assumes that your family is:

Your annual income is $50,000.What is your life insurance need based on the easy method?

The life expectancy of a female at the age of 30 is 47.65 years.It means that:

Which type of life insurance plan requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age?

Which type of life insurance policy combines term insurance and investment elements?

Life insurance is available from a wide range of private and public sources.

Subject to certain minimums,which life insurance is designed to let you pay premiums at any time in virtually any amount?

A beneficiary is a person designated to receive something such as life insurance proceeds,from the insured.

Life insurance premiums are determined basically by the:

A prime reason for buying an annuity is to:

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