Question 1

Which of the following is not a cash-value life insurance plan?

Accepted Answer

A) Whole life 
B) Universal life 
C) Term life 
D) Variable life 
A) Whole life 
B) Universal life 
C) Term life 
D) Variable life

Question 2

One of the reasons insurance is so expensive is due to the expense of developing,testing and verifying new drugs.This cost is passed on to consumers.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following factors is connected with convertible term life insurance?

Accepted Answer

A) A medical exam is not required. 
B) It helps make a smooth transition from term to cash-value insurance. 
C) There is a corresponding increase in premium cost. 
D) Generally,the conversion feature is only offered during the first two years. 
E) All of the above 
A) A medical exam is not required. 
B) It helps make a smooth transition from term to cash-value insurance. 
C) There is a corresponding increase in premium cost. 
D) Generally,the conversion feature is only offered during the first two years. 
E) All of the above

Question 4

All life insurance policies should have a contingent beneficiary designated.

Accepted Answer

A) True 
 B)False

Question 5

Convertible term life insurance can be converted into cash-value life insurance,depending on the insured's medical condition pending a medical exam.

Accepted Answer

A) True 
 B)False

Question 6

You are considering the need for insurance.You desire a policy that provides permanent protection,has a fixed premium,and provides a fixed death benefit.What type of policy would you purchase?

Accepted Answer

A) Term insurance 
B) Fixed premium insurance 
C) Whole life insurance 
D) Universal life insurance 
E) None of the above 
A) Term insurance 
B) Fixed premium insurance 
C) Whole life insurance 
D) Universal life insurance 
E) None of the above

Question 7

With term life insurance,the beneficiary receives a fixed death benefit.

Accepted Answer

A) True 
 B)False

Question 8

What is the purpose of companies such as A.M.Best,Moody's and Standard & Poor's?

Accepted Answer

A) They sell life insurance directly to consumers without agents. 
B) They evaluate and rate the financial stability of the insurance industry. 
C) They provide reinsurance coverage to the insurance industry. 
D) They sell low cost term insurance via the Internet. 
A) They sell life insurance directly to consumers without agents. 
B) They evaluate and rate the financial stability of the insurance industry. 
C) They provide reinsurance coverage to the insurance industry. 
D) They sell low cost term insurance via the Internet.

Question 9

The best strategy for health insurance coverage is to purchase a comprehensive policy.Of the following,which additional coverage should you not buy if it is not provided at work or in your individual policy?

Accepted Answer

A) Accident 
B) Terminal disease 
C) Dental 
D) Eyewear 
E) You should not buy any of the above if your employer does not provide them. 
A) Accident 
B) Terminal disease 
C) Dental 
D) Eyewear 
E) You should not buy any of the above if your employer does not provide them.

Question 10

Under COBRA,if you work for a company with at least 20 employees,you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company,depending on why you left.

Accepted Answer

A) zero to six months 
B) 6-12 months 
C) 72-84 months 
D) 18-36 months 
E) none of the above 
A) zero to six months 
B) 6-12 months 
C) 72-84 months 
D) 18-36 months 
E) none of the above

Question 11

Your insurance's copayment and deductible are the expenses that the insured must pay before the insurance company will pay any benefits.

Accepted Answer

A) True 
 B)False

Question 12

Tell about the pros of group term life insurance.

Accepted Answer

Group term life is often less expensive

Question 13

Statisticians who specialize in estimating the probability of death based on personal characteristics are known as

Accepted Answer

A) insurance adjusters. 
B) vultures. 
C) actuaries. 
D) beneficiaries. 
A) insurance adjusters. 
B) vultures. 
C) actuaries. 
D) beneficiaries.

Question 14

Define disability insurance and give the common sources of it.

Accepted Answer

Disability insurance is earning-power in

Question 15

Who needs disability insurance?

Accepted Answer

A) Anyone who relies on income from a job 
B) Only people who are married 
C) Only people who have dependents 
D) Only people who have no investment income 
A) Anyone who relies on income from a job 
B) Only people who are married 
C) Only people who have dependents 
D) Only people who have no investment income

Question 16

Roxanne has been stricken with a muscular degeneration disease that may potentially shorten her life span.However,she chose a renewable term insurance policy because she is able to be continually renew the policy for an agreed-upon period,regardless of her deteriorating condition.

Accepted Answer

A) True 
 B)False

Question 17

What is the major advantage of universal life insurance at any age?

Accepted Answer

Universal life allows for flex

Question 18

Luke is 30 years old and earns an annual salary of $55,000.His wife wants to take out a life insurance policy on him until he turns 67.Using the earnings multiple approach,how large should the face value of his insurance policy be-assuming his wife can earn an annual rate of return of 8.5% on his life insurance pay off?

Accepted Answer

A) $223,985 
B) $1,225,462 
C) $430,803 
D) $6,154,330 
E) None of the above 
A) $223,985 
B) $1,225,462 
C) $430,803 
D) $6,154,330 
E) None of the above

Question 19

What are the advantages of term life insurance?

Accepted Answer

A) It allows you to increase your insurance coverage for specific reasons and specific time periods. 
B) With decreasing term coverage,your premiums get smaller as you get older. 
C) It has no investment feature so it costs less than other forms of insurance. 
D) All of the above are correct. 
E) Only A and C are correct. 
A) It allows you to increase your insurance coverage for specific reasons and specific time periods. 
B) With decreasing term coverage,your premiums get smaller as you get older. 
C) It has no investment feature so it costs less than other forms of insurance. 
D) All of the above are correct. 
E) Only A and C are correct.

Question 20

Insurance that covers medical costs beyond those covered by basic health insurance is

Accepted Answer

A) major medical insurance. 
B) catastrophic insurance. 
C) premium insurance. 
D) none of the above. 
A) major medical insurance. 
B) catastrophic insurance. 
C) premium insurance. 
D) none of the above.

Which of the following is not a cash-value life insurance plan?

One of the reasons insurance is so expensive is due to the expense of developing,testing and verifying new drugs.This cost is passed on to consumers.

Which of the following factors is connected with convertible term life insurance?

All life insurance policies should have a contingent beneficiary designated.

Convertible term life insurance can be converted into cash-value life insurance,depending on the insured's medical condition pending a medical exam.

You are considering the need for insurance.You desire a policy that provides permanent protection,has a fixed premium,and provides a fixed death benefit.What type of policy would you purchase?

With term life insurance,the beneficiary receives a fixed death benefit.

What is the purpose of companies such as A.M.Best,Moody's and Standard & Poor's?

The best strategy for health insurance coverage is to purchase a comprehensive policy.Of the following,which additional coverage should you not buy if it is not provided at work or in your individual policy?

Under COBRA,if you work for a company with at least 20 employees,you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company,depending on why you left.

Your insurance's copayment and deductible are the expenses that the insured must pay before the insurance company will pay any benefits.

Tell about the pros of group term life insurance.

Statisticians who specialize in estimating the probability of death based on personal characteristics are known as

Define disability insurance and give the common sources of it.

Who needs disability insurance?

Roxanne has been stricken with a muscular degeneration disease that may potentially shorten her life span.However,she chose a renewable term insurance policy because she is able to be continually renew the policy for an agreed-upon period,regardless of her deteriorating condition.

What is the major advantage of universal life insurance at any age?

What are the advantages of term life insurance?

Insurance that covers medical costs beyond those covered by basic health insurance is

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

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Exam 9: Life and Health Insurance

Which of the following is not a cash-value life insurance plan?

One of the reasons insurance is so expensive is due to the expense of developing,testing and verifying new drugs.This cost is passed on to consumers.

Which of the following factors is connected with convertible term life insurance?

All life insurance policies should have a contingent beneficiary designated.

Convertible term life insurance can be converted into cash-value life insurance,depending on the insured's medical condition pending a medical exam.

You are considering the need for insurance.You desire a policy that provides permanent protection,has a fixed premium,and provides a fixed death benefit.What type of policy would you purchase?

With term life insurance,the beneficiary receives a fixed death benefit.

What is the purpose of companies such as A.M.Best,Moody's and Standard & Poor's?

The best strategy for health insurance coverage is to purchase a comprehensive policy.Of the following,which additional coverage should you not buy if it is not provided at work or in your individual policy?

Under COBRA,if you work for a company with at least 20 employees,you will be given the opportunity to continue your health insurance coverage for ________ after you leave the company,depending on why you left.

Your insurance's copayment and deductible are the expenses that the insured must pay before the insurance company will pay any benefits.

Tell about the pros of group term life insurance.

Statisticians who specialize in estimating the probability of death based on personal characteristics are known as

Define disability insurance and give the common sources of it.

Who needs disability insurance?

Roxanne has been stricken with a muscular degeneration disease that may potentially shorten her life span.However,she chose a renewable term insurance policy because she is able to be continually renew the policy for an agreed-upon period,regardless of her deteriorating condition.

What is the major advantage of universal life insurance at any age?

What are the advantages of term life insurance?

Insurance that covers medical costs beyond those covered by basic health insurance is

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