Question 1

Choose the option(s)available in the nonforfeiture clause of a cash-value life policy.

Accepted Answer

A) Exchange the policy for a paid-up term policy of equal face value. 
B) Receive the policy's cash value. 
C) Retain rights to a death benefit. 
D) Exchange the policy's cash value for a paid-up policy with a reduced face value. 
E) A,B,and D above 
A) Exchange the policy for a paid-up term policy of equal face value. 
B) Receive the policy's cash value. 
C) Retain rights to a death benefit. 
D) Exchange the policy's cash value for a paid-up policy with a reduced face value. 
E) A,B,and D above

Question 2

An employer-sponsored medical plan that allows each employee to have pretax earnings deposited into a specially designated account for the purposes of paying specific types of expenses is called a

Accepted Answer

A) flexible spending account. 
B) medical emergency account. 
C) medical contingency account. 
D) pre-tax contingency account. 
E) none of the above. 
A) flexible spending account. 
B) medical emergency account. 
C) medical contingency account. 
D) pre-tax contingency account. 
E) none of the above.

Question 3

What percent of Americans smoke?

Accepted Answer

A) 14% 
B) 21% 
C) 10% 
D) 25% 
A) 14% 
B) 21% 
C) 10% 
D) 25%

Question 4

Medicare was enacted to help persons with disabilities and people people over the age of ________ who qualify for Social Security.

Accepted Answer

A) 59 1/2 
B) 65 
C) 67 
D) 72 
A) 59 1/2 
B) 65 
C) 67 
D) 72

Question 5

Explain the advantages and disadvantages of medical reimbursement accounts.

Accepted Answer

An employee is allowed to deposit pretax

Question 6

Some financial planners suggest that you cover your gross annual income by a multiple of

Accepted Answer

A) 1-2 times. 
B) 5-10 times. 
C) 5-15 times. 
D) 4-4 times. 
A) 1-2 times. 
B) 5-10 times. 
C) 5-15 times. 
D) 4-4 times.

Question 7

The ________ is the entity who designates the beneficiary of the insurance policy.

Accepted Answer

A) beneficiary 
B) policy owner 
C) insured 
D) actuaries 
A) beneficiary 
B) policy owner 
C) insured 
D) actuaries

Question 8

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

Accepted Answer

A) True 
 B)False

Question 9

With a PPO,it is much more expensive to go to out of network healthcare providers.

Accepted Answer

A) True 
 B)False

Question 10

Term life insurance has a life insurance component and a savings plan.

Accepted Answer

A) True 
 B)False

Question 11

An insurance policy is a contract with an insurance company that spells out what losses are covered,what the policy costs,and who receives the payment if a loss occurs.

Accepted Answer

A) True 
 B)False

Question 12

The settlement option that provides for ongoing payments for a period of time is called

Accepted Answer

A) an annuity. 
B) a reverse premium. 
C) a premium payout. 
D) an annual premium. 
A) an annuity. 
B) a reverse premium. 
C) a premium payout. 
D) an annual premium.

Question 13

Only a long-term disability policy makes sense,because only it protects against financial catastrophe.

Accepted Answer

A) True 
 B)False

Question 14

According to the Keown book,50 percent of U.S.households have no life insurance coverage.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following does not offer some form of disability insurance?

Accepted Answer

A) Employer benefit package 
B) Individual health policy 
C) Medicare 
D) Worker's Comp 
E) Social Security 
A) Employer benefit package 
B) Individual health policy 
C) Medicare 
D) Worker's Comp 
E) Social Security

Question 16

A 30-year-old has what percent chance of a 90-day disability before the age of 65?

Accepted Answer

A) 33 
B) 25 
C) 47 
D) 50 
A) 33 
B) 25 
C) 47 
D) 50

Question 17

Health insurance not only pays for your medical bills but also provides you with replacement income while you are unable to work.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are types of life insurance annuity settlements except

Accepted Answer

A) straight life annuity. 
B) period certain annuity. 
C) refund annuity. 
D) joint life and survivorship annuity. 
E) variable annuity. 
A) straight life annuity. 
B) period certain annuity. 
C) refund annuity. 
D) joint life and survivorship annuity. 
E) variable annuity.

Question 19

Patty and Johnny have decided to buy a life insurance policy that would cover a $55,000 cash flow stream for the next 15 years until the kids are out of school.If they feel they can earn 5.5% after taxes and inflation,what are their life insurance needs today?

Accepted Answer

A) $657,272 
B) $552,067 
C) $795,520 
D) $825,000 
A) $657,272 
B) $552,067 
C) $795,520 
D) $825,000

Question 20

Actuaries are statisticians who specialize in estimating the probability of death based on personal characteristics,such as your age and general health,as well as lifestyle specifics such as whether or not you exercise.

Accepted Answer

A) True 
 B)False

Choose the option(s)available in the nonforfeiture clause of a cash-value life policy.

An employer-sponsored medical plan that allows each employee to have pretax earnings deposited into a specially designated account for the purposes of paying specific types of expenses is called a

What percent of Americans smoke?

Medicare was enacted to help persons with disabilities and people people over the age of ________ who qualify for Social Security.

Explain the advantages and disadvantages of medical reimbursement accounts.

Some financial planners suggest that you cover your gross annual income by a multiple of

The ________ is the entity who designates the beneficiary of the insurance policy.

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

With a PPO,it is much more expensive to go to out of network healthcare providers.

Term life insurance has a life insurance component and a savings plan.

An insurance policy is a contract with an insurance company that spells out what losses are covered,what the policy costs,and who receives the payment if a loss occurs.

The settlement option that provides for ongoing payments for a period of time is called

Only a long-term disability policy makes sense,because only it protects against financial catastrophe.

According to the Keown book,50 percent of U.S.households have no life insurance coverage.

Which of the following does not offer some form of disability insurance?

A 30-year-old has what percent chance of a 90-day disability before the age of 65?

Health insurance not only pays for your medical bills but also provides you with replacement income while you are unable to work.

All of the following are types of life insurance annuity settlements except

Patty and Johnny have decided to buy a life insurance policy that would cover a $55,000 cash flow stream for the next 15 years until the kids are out of school.If they feel they can earn 5.5% after taxes and inflation,what are their life insurance needs today?

Actuaries are statisticians who specialize in estimating the probability of death based on personal characteristics,such as your age and general health,as well as lifestyle specifics such as whether or not you exercise.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters

Exam 9: Life and Health Insurance

Choose the option(s)available in the nonforfeiture clause of a cash-value life policy.

An employer-sponsored medical plan that allows each employee to have pretax earnings deposited into a specially designated account for the purposes of paying specific types of expenses is called a

What percent of Americans smoke?

Medicare was enacted to help persons with disabilities and people people over the age of ________ who qualify for Social Security.

Explain the advantages and disadvantages of medical reimbursement accounts.

Some financial planners suggest that you cover your gross annual income by a multiple of

The ________ is the entity who designates the beneficiary of the insurance policy.

The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.

With a PPO,it is much more expensive to go to out of network healthcare providers.

Term life insurance has a life insurance component and a savings plan.

An insurance policy is a contract with an insurance company that spells out what losses are covered,what the policy costs,and who receives the payment if a loss occurs.

The settlement option that provides for ongoing payments for a period of time is called

Only a long-term disability policy makes sense,because only it protects against financial catastrophe.

According to the Keown book,50 percent of U.S.households have no life insurance coverage.

Which of the following does not offer some form of disability insurance?

A 30-year-old has what percent chance of a 90-day disability before the age of 65?

Health insurance not only pays for your medical bills but also provides you with replacement income while you are unable to work.

All of the following are types of life insurance annuity settlements except

Patty and Johnny have decided to buy a life insurance policy that would cover a $55,000 cash flow stream for the next 15 years until the kids are out of school.If they feel they can earn 5.5% after taxes and inflation,what are their life insurance needs today?

Actuaries are statisticians who specialize in estimating the probability of death based on personal characteristics,such as your age and general health,as well as lifestyle specifics such as whether or not you exercise.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Property and Liability Insurance

Investment Basics

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters