Exam 13: Life Insurance

How much term life insurance should you have to provide your family with $75,000 per year pretax for general expenses for 40 years,plus immediately pre-fund two $100,000 college accounts for your two children in the event of your death.Assume your death benefit could be invested at 6% per year for the entire period.

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

Which of the following insurance type is strictly intended to provide only insurance in the event of death?

For which type of insurance policy is choosing an insurance company with a high rating the most important?

Use the following two columns of items to answer the matching questions below: -settlement options

The easiest method of estimating your life insurance needs is the

Term insurance provided to a designated group of people with a common bond is called

The services that insurance companies provide should not be a factor in selecting a life insurance company.

Which of the following best explains why approximately one-third of households in the United States do not have life insurance?

Why is the A.M.Best rating of the insurance company from whom you plan to purchase a life insurance policy important?

Which type of life insurance is typically provided by an employer as part of the employee benefits package?

The income method,basing life insurance needs on multiples of current income,is the easiest and most accurate method of determining how much life insurance a person should buy.