Exam 13: Life Insurance

The constitutional beneficiary is the person who will receive the death benefits if the primary beneficiary is no longer living when the policyholder dies.

Whole life policies can be structured to provide a higher level of death benefits to beneficiaries in the early years of the policies or for the policies to be paid off in a certain time period,for example,20 years.

A lump sum settlement option is usually the best choice,even if a beneficiary is not very good at managing large sums of money.

Life insurance that provides insurance coverage for a specified term and also includes a savings option is called ________ insurance.

When choosing a life insurance company,you should consider all of the following criteria 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.

A life insurance premium is ________ related to your age.

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

The beneficiaries of life insurance policies can only be family members or those directly affected by a person's death.

If you wanted to provide more coverage for your family early in life when they need it the most and decrease the amount of benefits in later years,yet continue to pay the same premiums,you should buy a(n)________ policy.

If no one else relies on your income,life insurance may not be necessary.

The ________ in a life insurance policy allows the beneficiary to receive the proceeds in different ways.

Life insurance proceeds are not used to

Which of the following is a reason to buy life insurance?

If you determine your life insurance needs by considering your annual living expenses,special future expenses,debt,job marketability of spouse,and value of existing savings,you are using the ________ method.

A universal life policy gives policyholders the right to select their ________ which is a right that whole life policyholders do not have.

Which of the following factors does not affect your life insurance premiums?

Life insurance is critical to protect a family's financial situation in the event that a breadwinner dies.

Rather than purchasing mortgage life insurance,individuals can achieve the same goal and possibly save money by purchasing sufficient ________ to pay off the mortgage.

During the time the policy is in effect,term life insurance has a good savings and investment component.