Question 1

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 2

Which statement is correct about whole life insurance?

Accepted Answer

A)  Whole life insurance is cheaper than term life. 
B)  Policy holders overpay in the later years of the policy. 
C)  Whole life premiums increase with your age. 
D)  Whole life insurance is the best choice for most people. 
E)  Whole life insurance builds up cash value. 
A)  Whole life insurance is cheaper than term life. 
B)  Policy holders overpay in the later years of the policy. 
C)  Whole life premiums increase with your age. 
D)  Whole life insurance is the best choice for most people. 
E)  Whole life insurance builds up cash value.

Question 3

The premium for noncancelable and guaranteed renewable coverage is higher, but the coverages are well worth the extra cost.

Accepted Answer

A) True 
 B)False

Question 4

Critical illness benefits are usually added by riders to new or existing policies.

Accepted Answer

A) True 
 B)False

Question 5

The price of life insurance policies varies considerably among life insurance companies.

Accepted Answer

A) True 
 B)False

Question 6

Long-term-care insurance is a type of supplemental health insurance

Accepted Answer

A) True 
 B)False

Question 7

Single persons living alone have little or no need for life insurance.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is correct for term insurance?

Accepted Answer

A)  Premiums for term insurance remain constant. 
B)  Term insurance is protection for a specified period of time. 
C)  Term insurance has cash value. 
D)  Term insurance is usually more expensive than whole life insurance. 
E)  Not available in a form that pays less to the beneficiaries as time passes. 
A)  Premiums for term insurance remain constant. 
B)  Term insurance is protection for a specified period of time. 
C)  Term insurance has cash value. 
D)  Term insurance is usually more expensive than whole life insurance. 
E)  Not available in a form that pays less to the beneficiaries as time passes.

Question 9

The lump-sum payment is the most widely used settlement option for life insurance policies.

Accepted Answer

A) True 
 B)False

Question 10

Renewable term and decreasing term are types of whole life policies.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Of all life insurance applicants, _________ percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition

Accepted Answer

A)  50 
B)  62 
C)  86 
D)  98 
E)  100 
A)  50 
B)  62 
C)  86 
D)  98 
E)  100

Question 13

Most health insurance policies issued by health and life insurance companies are sold to

Accepted Answer

A)  victims of communicable diseases. 
B)  individuals with families. 
C)  single individuals with no dependents. 
D)  Employees and their dependents. 
E)  Employers, who in turn offer the benefits to employees. 
A)  victims of communicable diseases. 
B)  individuals with families. 
C)  single individuals with no dependents. 
D)  Employees and their dependents. 
E)  Employers, who in turn offer the benefits to employees.

Question 14

Double indemnity is when the insurance company pays twice the face value of the policy if the insured's death results from an accident.

Accepted Answer

A) True 
 B)False

Question 15

If you are uncertain whether you will need life insurance beyond the age of 65, which of the following features should you chose?

Accepted Answer

A)  Renewability option 
B)  Conversion option 
C)  Nonforfeiture option 
D)  Participating option 
E)  Retractable option 
A)  Renewability option 
B)  Conversion option 
C)  Nonforfeiture option 
D)  Participating option 
E)  Retractable option

Question 16

Critical insurance illness usually provides money for care if you are diagnosed with a serious illness such as AIDS.

Accepted Answer

A) True 
 B)False

Question 17

In most cases, your employer pays part or all of the cost of disability income protection plan.

Accepted Answer

A) True 
 B)False

Question 18

The fact is that for all age groups disability is more likely than death.

Accepted Answer

A) True 
 B)False

Question 19

Life insurance is one of the few ways to provide liquidity at the time of death.

Accepted Answer

A) True 
 B)False

Question 20

A beneficiary

Accepted Answer

A)  acts as a trustee of your insurance policy. 
B)  is a guardian of your children. 
C)  acts on your behalf after you die. 
D)  is designated to receive life insurance proceeds. 
E)  takes your money and runs. 
A)  acts as a trustee of your insurance policy. 
B)  is a guardian of your children. 
C)  acts on your behalf after you die. 
D)  is designated to receive life insurance proceeds. 
E)  takes your money and runs.

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

Which statement is correct about whole life insurance?

The premium for noncancelable and guaranteed renewable coverage is higher, but the coverages are well worth the extra cost.

Critical illness benefits are usually added by riders to new or existing policies.

The price of life insurance policies varies considerably among life insurance companies.

Long-term-care insurance is a type of supplemental health insurance

Single persons living alone have little or no need for life insurance.

Which of the following statements is correct for term insurance?

The lump-sum payment is the most widely used settlement option for life insurance policies.

Renewable term and decreasing term are types of whole life policies.

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

Of all life insurance applicants, _________ percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition

Most health insurance policies issued by health and life insurance companies are sold to

Double indemnity is when the insurance company pays twice the face value of the policy if the insured's death results from an accident.

If you are uncertain whether you will need life insurance beyond the age of 65, which of the following features should you chose?

Critical insurance illness usually provides money for care if you are diagnosed with a serious illness such as AIDS.

In most cases, your employer pays part or all of the cost of disability income protection plan.

The fact is that for all age groups disability is more likely than death.

Life insurance is one of the few ways to provide liquidity at the time of death.

A beneficiary

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

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

Which statement is correct about whole life insurance?

The premium for noncancelable and guaranteed renewable coverage is higher, but the coverages are well worth the extra cost.

Critical illness benefits are usually added by riders to new or existing policies.

The price of life insurance policies varies considerably among life insurance companies.

Long-term-care insurance is a type of supplemental health insurance

Single persons living alone have little or no need for life insurance.

Which of the following statements is correct for term insurance?

The lump-sum payment is the most widely used settlement option for life insurance policies.

Renewable term and decreasing term are types of whole life policies.

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

Of all life insurance applicants, _________ percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition

Most health insurance policies issued by health and life insurance companies are sold to

Double indemnity is when the insurance company pays twice the face value of the policy if the insured's death results from an accident.

If you are uncertain whether you will need life insurance beyond the age of 65, which of the following features should you chose?

Critical insurance illness usually provides money for care if you are diagnosed with a serious illness such as AIDS.

In most cases, your employer pays part or all of the cost of disability income protection plan.

The fact is that for all age groups disability is more likely than death.

Life insurance is one of the few ways to provide liquidity at the time of death.

A beneficiary

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