Question 1

Which of the following is the most 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 2

After you buy new life insurance you have a "free look" period of ______ days.

Accepted Answer

A)  10 
B)  7 
C)  21 
D)  30 
E)  28 
A)  10 
B)  7 
C)  21 
D)  30 
E)  28

Question 3

Universal life is a type of permanent life insurance

Accepted Answer

A) True 
 B)False

Question 4

You wish to build up a cash surrender value within your life insurance policy. Which of the following types of life insurance would permit you to do so? 
I. Whole Life Insurance
II. Term-to-100 Insurance
III. Universal Life Insurance
IV. Declining Term Insurance

Accepted Answer

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

Question 5

The easy method of estimating life insurance requirements is remarkably useful.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following will be used to determine a term insurance policy?

Accepted Answer

A)  age at which people will die. 
B)  number of people who will die this year. 
C)  number of people who will buy insurance this year. 
D)  number of agents who sell life insurance. 
E)  number of accidents in the region 
A)  age at which people will die. 
B)  number of people who will die this year. 
C)  number of people who will buy insurance this year. 
D)  number of agents who sell life insurance. 
E)  number of accidents in the region

Question 7

Disability income benefits begin on the 10th day you are disabled.

Accepted Answer

A) True 
 B)False

Question 8

Suppose you are a typical family. Your annual income is $60,000. Use the income replacement method to determine your need for life insurance. Your insurance should be in the amount of

Accepted Answer

A)  $245,000. 
B)  $294,000. 
C)  $345,000. 
D)  $400,000. 
E)  $450,000. 
A)  $245,000. 
B)  $294,000. 
C)  $345,000. 
D)  $400,000. 
E)  $450,000.

Question 9

Most people are more likely to lose their income due to death than due to disability.

Accepted Answer

A) True 
 B)False

Question 10

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

Accepted Answer

A)  Comprehensive major medical 
B)  Major medical expense 
C)  Physician's expense 
D)  Disability income 
E)  Surgical expense 
A)  Comprehensive major medical 
B)  Major medical expense 
C)  Physician's expense 
D)  Disability income 
E)  Surgical expense

Question 11

Group health insurance covers all of your health insurance needs.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following items are required in calculating your life insurance need?

Accepted Answer

A)  annual income and approximate expenses. 
B)  emergency fund. 
C)  financial needs. 
D)  liquid assets. 
E)  annual income and approximate expenses, emergency fund, financial needs, and liquid assets. 
A)  annual income and approximate expenses. 
B)  emergency fund. 
C)  financial needs. 
D)  liquid assets. 
E)  annual income and approximate expenses, emergency fund, financial needs, and liquid assets.

Question 13

The whole life policy is an insurance plan for which the policyholder

Accepted Answer

A)  pays a specified premium each year for as long as he or she lives 
B)  is also called a straight life policy 
C)  is also called a cash-value life policy 
D)  is also called an ordinary life policy 
E)  all the answers are correct 
A)  pays a specified premium each year for as long as he or she lives 
B)  is also called a straight life policy 
C)  is also called a cash-value life policy 
D)  is also called an ordinary life policy 
E)  all the answers are correct

Question 14

You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

Accepted Answer

A) True 
 B)False

Question 15

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

Accepted Answer

A) True 
 B)False

Question 16

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

Accepted Answer

A)  one 
B)  ten 
C)  thirty 
D)  sixty 
E)  ninety 
A)  one 
B)  ten 
C)  thirty 
D)  sixty 
E)  ninety

Question 17

Group health insurance plans comprise about 60 percent of all health insurance issued by health and life insurance companies.

Accepted Answer

A) True 
 B)False

Question 18

Suicide clause means that the insurance company

Accepted Answer

A)  can cancel the policy if age has been misstated. 
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)  allows the insured to pay premiums in installments. 
D)  automatically pays the premium out of the policy's cash value. 
A)  can cancel the policy if age has been misstated. 
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)  allows the insured to pay premiums in installments. 
D)  automatically pays the premium out of the policy's cash value.

Question 19

A term insurance policy pays a benefit only if you die during the period that the policy covers.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

Life insurance is a contract between an

Which of the following is the most common settlement option?

After you buy new life insurance you have a "free look" period of ______ days.

Universal life is a type of permanent life insurance

You wish to build up a cash surrender value within your life insurance policy. Which of the following types of life insurance would permit you to do so? I. Whole Life Insurance II. Term-to-100 Insurance III. Universal Life Insurance IV. Declining Term Insurance

The easy method of estimating life insurance requirements is remarkably useful.

Which of the following will be used to determine a term insurance policy?

Disability income benefits begin on the 10^th day you are disabled.

Suppose you are a typical family. Your annual income is $60,000. Use the income replacement method to determine your need for life insurance. Your insurance should be in the amount of

Most people are more likely to lose their income due to death than due to disability.

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

Group health insurance covers all of your health insurance needs.

Which of the following items are required in calculating your life insurance need?

The whole life policy is an insurance plan for which the policyholder

You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

Group health insurance plans comprise about 60 percent of all health insurance issued by health and life insurance companies.

Suicide clause means that the insurance company

A term insurance policy pays a benefit only if you die during the period that the policy covers.

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

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

Which of the following is the most common settlement option?

After you buy new life insurance you have a "free look" period of ______ days.

Universal life is a type of permanent life insurance

You wish to build up a cash surrender value within your life insurance policy. Which of the following types of life insurance would permit you to do so? I. Whole Life Insurance II. Term-to-100 Insurance III. Universal Life Insurance IV. Declining Term Insurance

The easy method of estimating life insurance requirements is remarkably useful.

Which of the following will be used to determine a term insurance policy?

Disability income benefits begin on the 10th day you are disabled.

Suppose you are a typical family. Your annual income is $60,000. Use the income replacement method to determine your need for life insurance. Your insurance should be in the amount of

Most people are more likely to lose their income due to death than due to disability.

Which type of insurance provides for the partial replacement of income lost by employees as a result of an accident, illness, etc.?

Group health insurance covers all of your health insurance needs.

Which of the following items are required in calculating your life insurance need?

The whole life policy is an insurance plan for which the policyholder

You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

The policy loan provision does not permit you to borrow any amount up to the cash value of the policy.

The "free-look" period allows you to cancel your life insurance without penalty anytime within _________ day(s)

Group health insurance plans comprise about 60 percent of all health insurance issued by health and life insurance companies.

Suicide clause means that the insurance company

A term insurance policy pays a benefit only if you die during the period that the policy covers.

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

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

Disability income benefits begin on the 10^th day you are disabled.