Exam 3: Protecting Your Wealth - Health and Life Insurance

Regarding the definition of "disability,"

Which considerations would be irrelevant when considering whether to cancel an old life insurance policy and start a new one?

While the Canada Health Act ensures that medically necessary services are provided based on individual need rather than the ability to pay,who funds the supplementary benefits available to certain segments of the population such as seniors,children,and social assistance recipients?

What happens if a policyholder with a universal life insurance policy misses a payment?

The beneficiary of a life insurance policy cannot be the owner's estate.

"Term-100" life insurance generally costs more than "minimum premium universal life".

To collect the benefits from a critical illness insurance policy,you must survive a specified illness for 30 days.

Which of the following is true regarding employer sponsored long-term disability insurance?

Family A consists of two spouses in their early thirties who have two children.They have just purchased a house with a low down payment,so they have a fairly high mortgage.They own two older cars.He works as an engineer with growing earnings potential and he has very basic medical coverage and a small insurance policy at work.She is studying accounting Chapter-time while she stays home to look after the children. Family B consists of a single woman in her late twenties who has been granted tenure as a professor at York University.Student loans are at a minimum,as they have been paid regularly since graduating with her PhD.Because of her dedication to academics,there is no plan for marriage in the long-term future.She owns a recent model compact car and occupies a one-bedroom aChapterment close to the school.She has a valuable art collection,most of which was left to her by her parents,and she intends to add to it as her growing income permits.Annual long-term vacations are her second passion.She will not qualify for York University's benefit plan until she completes two years of probationary service. Compare and contrast the insurance needs of these two cases.Please be as comprehensive as possible and provide the reasons for each decision.

A person age 25 to 35 has a greater than 50 percent chance of becoming disabled for longer than three months.

A disadvantage of term insurance is

The job marketability of your spouse

How much insurance would be needed to provide for a family for 20 years if the pre-tax income necessary to cover living expenses is $50 000 and the money can be invested at 6 percent?

The "any occupation" type of disability insurance is attractive to professionals.

The budget method for determining the amount of life insurance needed is based on

Which of the following insurance types is only intended to provide insurance in the event of death?

If you become disabled while employed and have disability insurance coverage,what types of resources might you have to cover you during the waiting period?

Which of the following types of life insurance has a cash value component?

Some advantages of whole life insurance are that it can provide coverage until death,the premiums and death benefit are guaranteed,and there is a savings or cash value feature.

Which of the following would be of little concern when calculating the amount of disability insurance needed?