Exam 8: Insuring Your Life

Underwriting is:

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 | Industrial life] insurance is one a type of insurance which is issued in policies with small face amounts,often $1,000 or less.

The most valuable single technique in personal risk management to assist an individual in determining how much life insurance is needed is:

When cash value is withdrawn from a life insurance policy it is always tax free.

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. -Most term insurance policies [are | are not] renewable.

Term life insurance is characterized by:

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.

In determining available resources to offset economic needs,you would generally not consider:

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. -Living benefits would [increase | decrease] the proceeds available for beneficiaries.

Generally,the primary purpose of life insurance is to provide a tax-advantaged investment plan.

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 most accurate way to determine how much life insurance you need is to use the [multiple earnings | needs] approach.

When you stop making premium payments on a whole life policy,the protection is immediately forfeited.

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. -The [policy owner | insurance company] makes the investment decisions with universal life insurance.

Policy loans are secured by the cash value of the life insurance policy.

_____ can be both an advantage and a disadvantage 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 a(n) [policy description | underwriting] clause.

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 beneficiary [will | will not] have to pay income taxes on the proceeds from a 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. -It [is | is not] possible to avoid most risks in 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. -If neither the primary nor secondary beneficiary survives the insured,the life insurance proceeds will be [kept by the insurance company | | paid to the estate of the insured and are distributed by the probate court].