Exam 10: Financial Planning With Life Insurance

Stephanie is the wage earner in a "typical family" with $40,000 gross annual income.Use the easy method to determine how much insurance she should carry.

Megan wants to purchase a life insurance policy that will allow her to invest in stock.Which of the following policies should she buy?

Purchasing a life insurance policy is a basic and inexpensive task.

The "family need" method of estimating life insurance includes factors such as Social Security and liquid assets.

Life expectancy for men is longer than that for women.

Which of the following is NOT temporary insurance?

If you want to purchase term insurance,you will receive all of the following except

Which of the following provisions requires the policyholder to pay overdue premiums with interest in order to put a lapsed policy back in force?

Contrast permanent and temporary insurance.Provide at least two characteristics that are unique to each.

Molly is thinking about buying a life insurance policy,but she is not sure about how much she will need in the next few years.She may need to change her coverage as her needs change.Which of the following policies would meet her needs?

The Tax Reform Act of 1986

All of the following are major rating agencies for insurance except

Explain three of the following riders: a.Waiver of premium disability benefit. b.Accidental death benefit. c.Guaranteed insurability option. d.Cost-of-living protection. e.Accelerated benefits. f.Second-to-die.

The settlement option that pays the life insurance proceeds to the beneficiary for as long as she or he lives is called

Don and Diane are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family,which includes two children,ages 5 and 9.They have determined that their annual income is $65,000 and their net worth is now $150,000.Using the "nonworking" spouse method,calculate the amount of life insurance they should carry.

Which of the following is a charge you will pay when you purchase a variable annuity?

An investment in an annuity is the same as an investment in a certificate of deposit.

Which of the following allows an individual to receive an amount of income that will change based on the income received from stocks or other investments over a certain period of time,or over his or her life?

Polly wants the opportunity to change the amount she pays for her annual premium through the life of her insurance policy without changing her coverage.Which of the following policies would meet her needs?

Jeff and Erica have two children.They plan to purchase life insurance using this formula: (18 - Youngest child's age)× $10,000.Which method are they using to determine their life insurance needs?