Exam 8: Insuring Your Life

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. -Credit life insurance is generally considered to be a [good | poor] life insurance buy.

Term life insurance is characterized by

Life insurance needs change dramatically over one's lifetime.

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 cash value will build more quickly with a [low-load | traditional] whole life policy.

A participating policy

Credit life insurance is often a requirement of credit card issuers.

Life insurance premiums are generally tax deductible by the insured.

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. -An insured can borrow from the [cash | face] value of her life insurance policy.

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. -Insurance is a tool that can lessen [economic | accident] risk.

If the objective of your life insurance program is to get the greatest death protection now for your insurance dollars,you should choose ____ insurance.

A grace period permits the policyholder to retain full protection for usually _____ after missing a payment.

A variable life policy combines life insurance coverage with investment options.

An attractive feature of whole life insurance is the availability of loans from the cash value.

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time,but you feel you will need life insurance for the rest of your life.You should choose ____ insurance.

____ and ____ are both relatively expensive types of decreasing-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. -Group insurance is most likely to be [term | whole life].

Which of the following is not characteristic of universal 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. -A life insurance policy should contain which of the following? [policy description | co-insurance clause].

The _________ option allows a terminally ill insured to receive a percentage of the death benefit for immediate use.

One should typically name both primary and contingent beneficiaries for life insurance policies.