Question 1

Group life insurance is usually term life insurance.

Accepted Answer

A) True 
 B)False

Question 2

Life insurance cash value may be borrowed from the insurer at a low interest and does not need to be paid back.

Accepted Answer

A) True 
 B)False

Question 3

Variable life insurance if most often the best plan for most people's primary insurance needs.

Accepted Answer

A) True 
 B)False

Question 4

Whole life insurance is designed to provide

Accepted Answer

A)  protection only. 
B)  savings only. 
C)  savings and loan value. 
D)  protection and savings. 
E)  loan value only. 
A)  protection only. 
B)  savings only. 
C)  savings and loan value. 
D)  protection and savings. 
E)  loan value only.

Question 5

The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits.

Accepted Answer

A) True 
 B)False

Question 6

If a named beneficiary does not survive an insured,the proceeds of the policy revert to the insurance company.

Accepted Answer

A) True 
 B)False

Question 7

The primary purpose of life insurance is to protect family members financially after one's death.

Accepted Answer

A) True 
 B)False

Question 8

The face value on a whole life policy is likely to change over time.

Accepted Answer

A) True 
 B)False

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-An insured can borrow from the [cash | face] value of her life insurance policy.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 10

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least [20% | 50%] of total premiums paid over the life of the policy.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 11

The need for additional life insurance can be determined by looking at the difference between available resources and family monetary needs.

Accepted Answer

A) True 
 B)False

Question 12

Term life insurance is characterized by

Accepted Answer

A)  level annual premiums throughout life. 
B)  premium amounts related to age. 
C)  inappropriateness for most person's life insurance needs. 
D)  non-convertibility. 
E)  cash value. 
A)  level annual premiums throughout life. 
B)  premium amounts related to age. 
C)  inappropriateness for most person's life insurance needs. 
D)  non-convertibility. 
E)  cash value.

Question 13

Decreasing term insurance usually has a decreasing face value and

Accepted Answer

A)  a decreasing premium. 
B)  a level premium. 
C)  an increasing premium. 
D)  a fluctuating premium. 
E)  none of the above. 
A)  a decreasing premium. 
B)  a level premium. 
C)  an increasing premium. 
D)  a fluctuating premium. 
E)  none of the above.

Question 14

The probability of a loss occurring can be reduced by

Accepted Answer

A)  risk observance. 
B)  loss prevention. 
C)  risk assumption. 
D)  risk retention. 
E)  insurance. 
A)  risk observance. 
B)  loss prevention. 
C)  risk assumption. 
D)  risk retention. 
E)  insurance.

Question 15

Unbundling in universal life insurance means that the cost of the insurance and savings elements are identified separately for the policy owner to see.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

Accepted Answer

A)  multiple indemnity clause 
B)  guaranteed purchase options 
C)  disability clause 
D)  paid-up insurance option 
E)  extended-term option 
A)  multiple indemnity clause 
B)  guaranteed purchase options 
C)  disability clause 
D)  paid-up insurance option 
E)  extended-term option

Question 17

Through insurance,society is able to

Accepted Answer

A)  reduce costs. 
B)  increase rewards. 
C)  reduce financial risks and share losses. 
D)  change financial risks and reduce losses. 
E)  anticipate risks. 
A)  reduce costs. 
B)  increase rewards. 
C)  reduce financial risks and share losses. 
D)  change financial risks and reduce losses. 
E)  anticipate risks.

Question 18

Cash value is an important component of whole life,universal life,and variable life but is never a component of term insurance.

Accepted Answer

A) True 
 B)False

Question 19

Life insurance needs change dramatically over one's lifetime.

Accepted Answer

A) True 
 B)False

Question 20

Life insurance policy loans are generally not taxable in the year taken and not deductible in the year repaid.

Accepted Answer

A) True 
 B)False

Group life insurance is usually term life insurance.

Life insurance cash value may be borrowed from the insurer at a low interest and does not need to be paid back.

Variable life insurance if most often the best plan for most people's primary insurance needs.

Whole life insurance is designed to provide

The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits.

If a named beneficiary does not survive an insured,the proceeds of the policy revert to the insurance company.

The primary purpose of life insurance is to protect family members financially after one's death.

The face value on a whole life policy is likely to change over time.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An insured can borrow from the [cash | face] value of her life insurance policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least [20% | 50%] of total premiums paid over the life of the policy.

The need for additional life insurance can be determined by looking at the difference between available resources and family monetary needs.

Term life insurance is characterized by

Decreasing term insurance usually has a decreasing face value and

The probability of a loss occurring can be reduced by

Unbundling in universal life insurance means that the cost of the insurance and savings elements are identified separately for the policy owner to see.

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

Through insurance,society is able to

Cash value is an important component of whole life,universal life,and variable life but is never a component of term insurance.

Life insurance needs change dramatically over one's lifetime.

Life insurance policy loans are generally not taxable in the year taken and not deductible in the year repaid.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 8: Insuring Your Life

Group life insurance is usually term life insurance.

Life insurance cash value may be borrowed from the insurer at a low interest and does not need to be paid back.

Variable life insurance if most often the best plan for most people's primary insurance needs.

Whole life insurance is designed to provide

The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits.

If a named beneficiary does not survive an insured,the proceeds of the policy revert to the insurance company.

The primary purpose of life insurance is to protect family members financially after one's death.

The face value on a whole life policy is likely to change over time.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -An insured can borrow from the [cash | face] value of her life insurance policy.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for at least [20% | 50%] of total premiums paid over the life of the policy.

The need for additional life insurance can be determined by looking at the difference between available resources and family monetary needs.

Term life insurance is characterized by

Decreasing term insurance usually has a decreasing face value and

The probability of a loss occurring can be reduced by

Unbundling in universal life insurance means that the cost of the insurance and savings elements are identified separately for the policy owner to see.

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

Through insurance,society is able to

Cash value is an important component of whole life,universal life,and variable life but is never a component of term insurance.

Life insurance needs change dramatically over one's lifetime.

Life insurance policy loans are generally not taxable in the year taken and not deductible in the year repaid.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters