Question 1

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

Accepted Answer

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

Question 2

Disability benefits begin on the first day you are disabled.

Accepted Answer

A) True 
 B)False  False

Question 3

The price of life insurance policies varies very little among life insurance companies.

Accepted Answer

A) True 
 B)False  False

Question 4

Life insurance may be used as a way to provide liquidity at the time of death.

Accepted Answer

A) True 
 B)False

Question 5

The method of determining life insurance requirements that does not ignore such important factors as emergency funds and your liquid assets is called the

Accepted Answer

A)  easy method. 
B)  "family need" method 
C)  DINK method. 
D)  "nonworking" spouse method. 
E)  hard method. 
A)  easy method. 
B)  "family need" method 
C)  DINK method. 
D)  "nonworking" spouse method. 
E)  hard method.

Question 6

The prices of life insurance policies

Accepted Answer

A)  vary considerably. 
B)  are relatively the same. 
C)  are higher for females. 
D)  have remained constant. 
E)  are higher in the Midwest than in the Northeast. 
A)  vary considerably. 
B)  are relatively the same. 
C)  are higher for females. 
D)  have remained constant. 
E)  are higher in the Midwest than in the Northeast.

Question 7

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die, which type of insurance would provide money for your final medical costs?

Accepted Answer

A)  Life insurance 
B)  Critical illness insurance 
C)  Professional insurance 
D)  House insurance 
E)  Long-term care 
A)  Life insurance 
B)  Critical illness insurance 
C)  Professional insurance 
D)  House insurance 
E)  Long-term care

Question 8

The main difference between whole life insurance and critical illness insurance is that critical illness insurance

Accepted Answer

A)  has a higher approval rating 
B)  is cheaper 
C)  is more difficult to understand 
D)  pays the proceeds before the policyholder's death 
E)  has limits on the amount of insurance you can purchase 
A)  has a higher approval rating 
B)  is cheaper 
C)  is more difficult to understand 
D)  pays the proceeds before the policyholder's death 
E)  has limits on the amount of insurance you can purchase

Question 9

The waiting period for disability income insurance benefits is usually _________ after the beginning of the policy.

Accepted Answer

A)  0 days (no waiting period) 
B)  10 days 
C)  15 days 
D)  30 to ninety days 
E)  365 days 
A)  0 days (no waiting period) 
B)  10 days 
C)  15 days 
D)  30 to ninety days 
E)  365 days

Question 10

Which of the following is not a common settlement option?

Accepted Answer

A)  life income option. 
B)  limited installment payment. 
C)  lump-sum payment. 
D)  variable installment payment. 
E)  proceeds left with the company. 
A)  life income option. 
B)  limited installment payment. 
C)  lump-sum payment. 
D)  variable installment payment. 
E)  proceeds left with the company.

Question 11

You wish to ensure that your life insurance will not cease once you reach the age of 70. Which types of life insurance would satisfy this need? 
I. Whole Life Insurance
II. Term-to-100 Insurance
III. Universal Life Insurance
IV. Declining Term Insurance

Accepted Answer

A)  I and II only 
B)  I, II and III only 
C)  IV only 
D)  I, III and IV only 
E)  1 and IV only 
A)  I and II only 
B)  I, II and III only 
C)  IV only 
D)  I, III and IV only 
E)  1 and IV only

Question 12

Which of the following methods can be used to estimate your life insurance requirements?

Accepted Answer

A)  income replacement method. 
B)  family need method. 
C)  average income replacement method. 
D)  A and B are correct. 
E)  A, B and C are correct 
A)  income replacement method. 
B)  family need method. 
C)  average income replacement method. 
D)  A and B are correct. 
E)  A, B and C are correct

Question 13

A(n) _______ provides specified benefits regardless of whether the actual expenses are greater or less then the benefits.

Accepted Answer

A)  medical expense policy 
B)  comprehensive expense insurance 
C)  interim expense insurance 
D)  indemnity policy 
E)  reimbursement policy 
A)  medical expense policy 
B)  comprehensive expense insurance 
C)  interim expense insurance 
D)  indemnity policy 
E)  reimbursement policy

Question 14

The accidental death benefit is often called double indemnity.

Accepted Answer

A) True 
 B)False

Question 15

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

Accepted Answer

A) True 
 B)False

Question 16

The premium for the whole life policy increases with your age.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

Before buying life insurance, consider y

Question 18

A good supplemental health and disability insurance plan should

Accepted Answer

A)  offer basic coverage for hospital costs. 
B)  provide for prescription drug cost not covered by your provincial plan. 
C)  provide for dental maintenance including dentures and oral surgery. 
D)  include vision care insurance. 
E)  offer basic coverage for hospital costs, provide for prescription drug cost not covered by your provincial plan, provide for dental maintenance including dentures and oral surgery, and include vision care insurance. 
A)  offer basic coverage for hospital costs. 
B)  provide for prescription drug cost not covered by your provincial plan. 
C)  provide for dental maintenance including dentures and oral surgery. 
D)  include vision care insurance. 
E)  offer basic coverage for hospital costs, provide for prescription drug cost not covered by your provincial plan, provide for dental maintenance including dentures and oral surgery, and include vision care insurance.

Question 19

A basic supplementary health and disability insurance plan should

Accepted Answer

A)  provide at least one year's hospital room and board in full. 
B)  provide at least $2 million lifetime maximum for each family member. 
C)  pay 100 percent for out-of-hospital expenses. 
D)  include hospital costs, supplementary prescription drug charges, and dental maintenance. 
E)  include vision care insurance. 
A)  provide at least one year's hospital room and board in full. 
B)  provide at least $2 million lifetime maximum for each family member. 
C)  pay 100 percent for out-of-hospital expenses. 
D)  include hospital costs, supplementary prescription drug charges, and dental maintenance. 
E)  include vision care insurance.

Question 20

Basic health insurance coverage should include hospital costs, supplementary prescription drug charges, and dental maintenance.

Accepted Answer

A) True 
 B)False

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

Disability benefits begin on the first day you are disabled.

The price of life insurance policies varies very little among life insurance companies.

Life insurance may be used as a way to provide liquidity at the time of death.

The method of determining life insurance requirements that does not ignore such important factors as emergency funds and your liquid assets is called the

The prices of life insurance policies

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die, which type of insurance would provide money for your final medical costs?

The main difference between whole life insurance and critical illness insurance is that critical illness insurance

The waiting period for disability income insurance benefits is usually _________ after the beginning of the policy.

Which of the following is not a common settlement option?

You wish to ensure that your life insurance will not cease once you reach the age of 70. Which types of life insurance would satisfy this need? I. Whole Life Insurance II. Term-to-100 Insurance III. Universal Life Insurance IV. Declining Term Insurance

Which of the following methods can be used to estimate your life insurance requirements?

A(n) _______ provides specified benefits regardless of whether the actual expenses are greater or less then the benefits.

The accidental death benefit is often called double indemnity.

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

The premium for the whole life policy increases with your age.

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

A good supplemental health and disability insurance plan should

A basic supplementary health and disability insurance plan should

Basic health insurance coverage should include hospital costs, supplementary prescription drug charges, and dental maintenance.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

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Exam 9: Life, Health, and Disability Insurance

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

Disability benefits begin on the first day you are disabled.

The price of life insurance policies varies very little among life insurance companies.

Life insurance may be used as a way to provide liquidity at the time of death.

The method of determining life insurance requirements that does not ignore such important factors as emergency funds and your liquid assets is called the

The prices of life insurance policies

If you are diagnosed with a life-threatening illness and expect to incur high medical costs before you die, which type of insurance would provide money for your final medical costs?

The main difference between whole life insurance and critical illness insurance is that critical illness insurance

The waiting period for disability income insurance benefits is usually _________ after the beginning of the policy.

Which of the following is not a common settlement option?

You wish to ensure that your life insurance will not cease once you reach the age of 70. Which types of life insurance would satisfy this need? I. Whole Life Insurance II. Term-to-100 Insurance III. Universal Life Insurance IV. Declining Term Insurance

Which of the following methods can be used to estimate your life insurance requirements?

A(n) _______ provides specified benefits regardless of whether the actual expenses are greater or less then the benefits.

The accidental death benefit is often called double indemnity.

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

The premium for the whole life policy increases with your age.

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

A good supplemental health and disability insurance plan should

A basic supplementary health and disability insurance plan should

Basic health insurance coverage should include hospital costs, supplementary prescription drug charges, and dental maintenance.

Personal Financial Planning: An Introduction

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

The Banking Services of Financial Institutions

Introduction to Consumer Credit

Choosing a Source Credit: the Costs of Credit Alternatives

The Finances of Housing

Home and Automobile Insurance

Fundamentals of Investing

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Retirement Planning

Estate Planning

Filters