Question 1

The needs analysis method is the most accurate approach to determining the proper amount of life insurance to buy.

Accepted Answer

A) True 
 B)False

Question 2

When a primary beneficiary dies before the insured,proceeds are payable to

Accepted Answer

A) the state 
B) the probate court 
C) the insured's estate 
D) the contingent beneficiary or beneficiaries 
E) the insurance company keeps the proceeds 
A) the state 
B) the probate court 
C) the insured's estate 
D) the contingent beneficiary or beneficiaries 
E) the insurance company keeps the proceeds

Question 3

You may reinstate your lapsed life insurance policy without passing a physical examination.

Accepted Answer

A) True 
 B)False

Question 4

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

Accepted Answer

A) True 
 B)False

Question 5

Credit life insurance is sold in conjunction with installment loans.

Accepted Answer

A) True 
 B)False

Question 6

Loans are available from term life insurance policies.

Accepted Answer

A) True 
 B)False

Question 7

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 universal life insurance.

Accepted Answer

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

Question 8

The life-income-with-period-certain option guarantees a specified number of settlement payments that are passable to secondary beneficiaries.

Accepted Answer

A) True 
 B)False

Question 9

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 [lump sum | life income] settlement option is the most commonly selected option by life insurance beneficiaries.

Accepted Answer

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

Question 10

From the standpoint of the person buying insurance,the central purpose of insurance should be:

Accepted Answer

A) to collect for all accidental losses 
B) to transfer risks of serious losses 
C) to support the prevention of losses 
D) to accumulate savings 
E) to reduce payments for the most frequently occurring losses 
A) to collect for all accidental losses 
B) to transfer risks of serious losses 
C) to support the prevention of losses 
D) to accumulate savings 
E) to reduce payments for the most frequently occurring losses

Question 11

A life insurance policy should contain all the following except

Accepted Answer

A) Policy description 
B) Underwriting discussion 
C) Column definitions and key terms 
D) Coinsurance clause 
E) Disclaimer 
A) Policy description 
B) Underwriting discussion 
C) Column definitions and key terms 
D) Coinsurance clause 
E) Disclaimer

Question 12

Universal life insurance is often suitable for single college students since the cost is quite low.

Accepted Answer

A) True 
 B)False

Question 13

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 100% and 150% of the first year's premium.

Accepted Answer

A) True 
 B)False

Question 14

Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy he will receive the cash value.His plan is a ____ life policy.

Accepted Answer

A) term 
B) whole life 
C) limited payment 
D) universal 
E) none of the above 
A) term 
B) whole life 
C) limited payment 
D) universal 
E) none of the above

Question 15

The basic purpose of insurance is to protect you from the financial consequences of losing assets or income due to accident,illness,or death.

Accepted Answer

A) True 
 B)False

Question 16

Underwriters can predict whether or not you will suffer a loss this year.

Accepted Answer

A) True 
 B)False

Question 17

Unbundling in universal life insurance means that the cost of the insurance and savings elements are identified separately for the policy owner to see.

Accepted Answer

A) True 
 B)False

Question 18

The needs analysis method of determining the amount of life insurance considers

Accepted Answer

A) needed income. 
B) debt liquidation. 
C) extra expenses if income producer dies. 
D) special needs of dependents. 
E) all of these. 
A) needed income. 
B) debt liquidation. 
C) extra expenses if income producer dies. 
D) special needs of dependents. 
E) all of these.

Question 19

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.
-Using the needs approach,we look at the survivors' needs if the income producer dies [tomorrow | before his life expectancy].

Accepted Answer

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

Question 20

Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on.He has purchased a face value of $100,000 and can accumulate cash value.What type of life insurance has Kurt purchased?

Accepted Answer

A) universal life 
B) whole life 
C) modified whole life 
D) term life 
E) adjustable whole life 
A) universal life 
B) whole life 
C) modified whole life 
D) term life 
E) adjustable whole life

The needs analysis method is the most accurate approach to determining the proper amount of life insurance to buy.

When a primary beneficiary dies before the insured,proceeds are payable to

You may reinstate your lapsed life insurance policy without passing a physical examination.

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

Credit life insurance is sold in conjunction with installment loans.

Loans are available from term life insurance policies.

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 universal life insurance.

The life-income-with-period-certain option guarantees a specified number of settlement payments that are passable to secondary beneficiaries.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

A life insurance policy should contain all the following except

Universal life insurance is often suitable for single college students since the cost is quite low.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 100% and 150% of the first year's premium.

Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy he will receive the cash value.His plan is a ____ life policy.

The basic purpose of insurance is to protect you from the financial consequences of losing assets or income due to accident,illness,or death.

Underwriters can predict whether or not you will suffer a loss this year.

Unbundling in universal life insurance means that the cost of the insurance and savings elements are identified separately for the policy owner to see.

The needs analysis method of determining the amount of life insurance considers

Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on.He has purchased a face value of $100,000 and can accumulate cash value.What type of life insurance has Kurt purchased?

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

Exam 8: Insuring Your Life

The needs analysis method is the most accurate approach to determining the proper amount of life insurance to buy.

When a primary beneficiary dies before the insured,proceeds are payable to

You may reinstate your lapsed life insurance policy without passing a physical examination.

Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured.

Credit life insurance is sold in conjunction with installment loans.

Loans are available from term life insurance policies.

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 universal life insurance.

The life-income-with-period-certain option guarantees a specified number of settlement payments that are passable to secondary beneficiaries.

From the standpoint of the person buying insurance,the central purpose of insurance should be:

A life insurance policy should contain all the following except

Universal life insurance is often suitable for single college students since the cost is quite low.

With traditional whole life policies sold by an agent,sales commissions and marketing expenses account for between 100% and 150% of the first year's premium.

Henry must make set premium payments on his insurance policy until he dies,and if he cancels the policy he will receive the cash value.His plan is a ____ life policy.

The basic purpose of insurance is to protect you from the financial consequences of losing assets or income due to accident,illness,or death.

Underwriters can predict whether or not you will suffer a loss this year.

Unbundling in universal life insurance means that the cost of the insurance and savings elements are identified separately for the policy owner to see.

The needs analysis method of determining the amount of life insurance considers

Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on.He has purchased a face value of $100,000 and can accumulate cash value.What type of life insurance has Kurt purchased?

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