Exam 13: Life Insurance

In comparison to an equivalent amount of term insurance,mortgage life insurance

Which of the following will not affect the premiums on a term life insurance policy?

Life insurance premiums are based on all of the following except

If you want to borrow money from the cash value of your whole life policy,the interest rates are relatively high and the terms of the loan are quite strict.

Which of the following is not an option as a way to use the cash value of your whole life policy?

Using the budget method of determining life insurance needs,a family's future expected expenses is considered.

Which of the following policies will not give you a cash settlement if you terminate the policy?

Using the income method,determine the amount of insurance an individual would need,employing a factor of 10,if their net income is $65,000,their assets total $280,000,their liabilities total $130,000,their two children's anticipated college education needs total $730,000,and their invalid mother's future nursing home expenses total $290,000. (a)$2,850,000 (b)$1,500,000 (c)$650,000 (d)$730,000

If your life follows the pattern of college-marriage-kids-retirement,your need for life insurance will

Name four factors that are utilized in the budget method of calculating life insurance.

Term insurance will provide most of a young family's life insurance coverage due to its affordable cost.

You are putting $100 a month into a passbook savings account to pay for your child's college education.You worry that if you die before you get enough saved,your child will not be able to get a college education.Which of the following types of life insurance would best fit your needs at the lowest cost?

A person earning $75,000 per year has term life insurance at their place of employment equal to their annual income.Using the income method with a factor of 5,how much additional life insurance will s/he need? (a)$375,000 (b)$300,000 (c)$75,000 (d)$50,000

Whole life policies are the least expensive way to meet your life insurance needs.

Of the following statements dealing with premiums on life insurance,which is not true?

If the premium on a term insurance policy is not paid by the due date,which of the following is true?

The only reason a person would buy life insurance is to eliminate or substantially reduce the financial consequences of that person's death by providing income to his or her dependents.

A person's need for life insurance varies quite a bit over his or her lifetime.

In using the Internet to price insurance,which of the following is not true?

All of the following are true of the income method of determining life insurance needs except it