Question 1

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

Accepted Answer

A) True 
 B)False  True

Question 2

A life insurance policy's cash value may be collected by terminating the policy.

Accepted Answer

A) True 
 B)False  True

Question 3

Bobby Lee died of cancer.His $40,000 policy had a triple indemnity clause.His beneficiary will receive $120,000.

Accepted Answer

A) True 
 B)False  False

Question 4

Social security benefits are often available resources to the family after the death of a family member.

Accepted Answer

A) True 
 B)False

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Smoking [will | will not] be a factor in determining life insurance premiums.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

Accepted Answer

A) $200,000 to Jack 
B) $100,000 each to Mimi and Ann 
C) $100,000 to Jack and $50,000 each to Mimi and Ann 
D) $66,666 each to Jack, Mimi, and Ann 
E) $150,000 to Jack and $25,000 each to Mimi and Ann 
A) $200,000 to Jack 
B) $100,000 each to Mimi and Ann 
C) $100,000 to Jack and $50,000 each to Mimi and Ann 
D) $66,666 each to Jack, Mimi, and Ann 
E) $150,000 to Jack and $25,000 each to Mimi and Ann

Question 7

Term life insurance becomes less expensive as you grow older.

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

____ is not descriptive of an option of term life insurance.

Accepted Answer

A) Limited payment 
B) Decreasing 
C) Convertible 
D) Renewable 
E) Annual 
A) Limited payment 
B) Decreasing 
C) Convertible 
D) Renewable 
E) Annual

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The policyholder assumes the investment risk with [whole life | variable life] insurance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

If a life insurance policy pays dividends,it is said to be

Accepted Answer

A) universal life 
B) participating 
C) investment grade 
D) paid-up 
E) extended 
A) universal life 
B) participating 
C) investment grade 
D) paid-up 
E) extended

Question 12

Group life insurance is usually term life insurance.

Accepted Answer

A) True 
 B)False

Question 13

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The [policyholder | insurance company] makes the investment decisions with variable life insurance.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

In determining available resources that would be available after death,you would generally not consider

Accepted Answer

A) social security benefits. 
B) earning potential of surviving children. 
C) earning potential of surviving spouse. 
D) savings. 
E) market value of home in which survivors will reside. 
A) social security benefits. 
B) earning potential of surviving children. 
C) earning potential of surviving spouse. 
D) savings. 
E) market value of home in which survivors will reside.

Question 15

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

Accepted Answer

A) True 
 B)False

Question 16

____ is a common provision in many term policies.

Accepted Answer

A) A reward clause 
B) A renewable clause 
C) Cash value 
D) A limited clause 
E) An arbitration clause 
A) A reward clause 
B) A renewable clause 
C) Cash value 
D) A limited clause 
E) An arbitration clause

Question 17

Risk avoidance means asking an insurance company to take over the risk for a small payment (the premium).

Accepted Answer

A) True 
 B)False

Question 18

Low-load whole life policies grow cash values more quickly than traditional whole life policies.

Accepted Answer

A) True 
 B)False

Question 19

The best way to handle risk is to

Accepted Answer

A) avoid risk 
B) assume risk. 
C) try to prevent losses. 
D) transfer risk to an insurance company. 
E) use some combination of these. 
A) avoid risk 
B) assume risk. 
C) try to prevent losses. 
D) transfer risk to an insurance company. 
E) use some combination of these.

Question 20

An insured usually chooses variable life insurance in order to

Accepted Answer

A) provide more flexible coverage. 
B) emphasize the savings portion while still having death protection. 
C) lessen the savings feature of life insurance. 
D) substitute for fixed-dollar insurance protection. 
E) reduce insurance premiums. 
A) provide more flexible coverage. 
B) emphasize the savings portion while still having death protection. 
C) lessen the savings feature of life insurance. 
D) substitute for fixed-dollar insurance protection. 
E) reduce insurance premiums.

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

A life insurance policy's cash value may be collected by terminating the policy.

Bobby Lee died of cancer.His $40,000 policy had a triple indemnity clause.His beneficiary will receive $120,000.

Social security benefits are often available resources to the family after the death of a family member.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Smoking [will | will not] be a factor in determining life insurance premiums.

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

Term life insurance becomes less expensive as you grow older.

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

____ is not descriptive of an option of term life insurance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The policyholder assumes the investment risk with [whole life | variable life] insurance.

If a life insurance policy pays dividends,it is said to be

Group life insurance is usually term life insurance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The [policyholder | insurance company] makes the investment decisions with variable life insurance.

In determining available resources that would be available after death,you would generally not consider

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

____ is a common provision in many term policies.

Risk avoidance means asking an insurance company to take over the risk for a small payment (the premium).

Low-load whole life policies grow cash values more quickly than traditional whole life policies.

The best way to handle risk is to

An insured usually chooses variable life insurance in order to

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

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Exam 8: Insuring Your Life

The right of the policyholder to the cash value of a whole life policy is a nonforfeiture right.

A life insurance policy's cash value may be collected by terminating the policy.

Bobby Lee died of cancer.His $40,000 policy had a triple indemnity clause.His beneficiary will receive $120,000.

Social security benefits are often available resources to the family after the death of a family member.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Smoking [will | will not] be a factor in determining life insurance premiums.

Marilyn Simms died with a $200,000 life insurance policy.Her husband,Jack,was the primary beneficiary and their children,Mimi (age 24)and Ann (age 30),were the contingent beneficiaries.All three survived Marilyn.How would the policy proceeds be distributed?

Term life insurance becomes less expensive as you grow older.

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

____ is not descriptive of an option of term life insurance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The policyholder assumes the investment risk with [whole life | variable life] insurance.

If a life insurance policy pays dividends,it is said to be

Group life insurance is usually term life insurance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The [policyholder | insurance company] makes the investment decisions with variable life insurance.

In determining available resources that would be available after death,you would generally not consider

The life insurance needs of beneficiaries are secondary since most proceeds are paid to living policyholders.

____ is a common provision in many term policies.

Risk avoidance means asking an insurance company to take over the risk for a small payment (the premium).

Low-load whole life policies grow cash values more quickly than traditional whole life policies.

The best way to handle risk is to

An insured usually chooses variable life insurance in order to

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