Question 1

The death benefit and cash values are not guaranteed in a universal life insurance contract but are in whole life.

Accepted Answer

A) True 
 B)False

Question 2

Over 30 percent of Canadians over age 65 receive some kind of kind of care due to long-term health problems.

Accepted Answer

A) True 
 B)False

Question 3

While the Canada Health Act is federal legislation,it is the responsibility of the provinces and territories to Administer and deliver health care services.

Accepted Answer

A) True 
 B)False

Question 4

Whole life insurance has a premium that

Accepted Answer

A) declines. 
B) is variable. 
C) is fixed. 
D) increases. 
A) declines. 
B) is variable. 
C) is fixed. 
D) increases.

Question 5

Which of the following statements is true regarding disability insurance?

Accepted Answer

A) You should have it even if you are retired and living on a pension. 
B) The principle of indemnification will limit the amount of coverage you can get with an individual policy. 
C) If you are self-employed,critical illness insurance would be a better option than disability. 
D) Disability insurance from an employee group plan is the best coverage. 
A) You should have it even if you are retired and living on a pension. 
B) The principle of indemnification will limit the amount of coverage you can get with an individual policy. 
C) If you are self-employed,critical illness insurance would be a better option than disability. 
D) Disability insurance from an employee group plan is the best coverage.

Question 6

Which of the following is not an important consideration from the employer's perspective in sponsoring a group benefits plan?

Accepted Answer

A) The ability to write off premiums as business expenses 
B) Providing coverage for employees who are uninsurable 
C) Encouraging loyalty and trust from employees 
D) Improving staff retention 
A) The ability to write off premiums as business expenses 
B) Providing coverage for employees who are uninsurable 
C) Encouraging loyalty and trust from employees 
D) Improving staff retention

Question 7

The income method,used to calculate your life insurance coverage,multiplies your current annual income by

Accepted Answer

A) your expenses per month. 
B) the number of your dependants. 
C) an arbitrary number,such as 10. 
D) a present value factor of your future income earning potential. 
A) your expenses per month. 
B) the number of your dependants. 
C) an arbitrary number,such as 10. 
D) a present value factor of your future income earning potential.

Question 8

Disability insurance coverage will replace all your lost income while disabled.

Accepted Answer

A) True 
 B)False

Question 9

A disadvantage of whole life policies is that

Accepted Answer

A) the premiums are not predictable. 
B) the premiums are higher than for term policies. 
C) the face value of the policy can change over time. 
D) the cash value is not available to policy owners. 
A) the premiums are not predictable. 
B) the premiums are higher than for term policies. 
C) the face value of the policy can change over time. 
D) the cash value is not available to policy owners.

Question 10

Mortgage life insurance is usually the best deal because the policy owners get a group discount through the lender.

Accepted Answer

A) True 
 B)False

Question 11

The income method,basing life insurance needs on multiples of current income,is the most useful method for determining how much life insurance a person should buy.

Accepted Answer

A) True 
 B)False

Question 12

Term life insurance is considered temporary insurance,since the policy is in effect for only a relatively short period of time.

Accepted Answer

A) True 
 B)False

Question 13

What would be the out-of-pocket cost to an individual whose long-term care policy includes a 20 percent co-insurance clause? A current long-term illness has resulted in total expenses of $250000.

Accepted Answer

A) $250 000 
B) $200 000 
C) $50 000 
D) $0 
A) $250 000 
B) $200 000 
C) $50 000 
D) $0

Question 14

The similarity between disability income and long-term care insurance is

Accepted Answer

A) they both require proof of income. 
B) they both have a waiting period. 
C) they both provide a death benefit. 
D) they both extend benefits beyond age 65. 
A) they both require proof of income. 
B) they both have a waiting period. 
C) they both provide a death benefit. 
D) they both extend benefits beyond age 65.

Question 15

Now that you have studied home,auto,liability,health,disability,critical illness,and long-term care insurance coverage,you should have a good understanding of how they relate to your financial plan.With respect to each type of insurance,discuss the relative importance that each type has to your current understanding of financial planning.Rank the importance of each type of coverage as it pertains to you personally.What types of insurance could you do without? What coverage can you not do without under your present circumstances? What types of insurance would you consider adding to your plan as your lifestyle changes?

Accepted Answer

There is no correct answer to this quest

Question 16

If Tom is a technology consultant and wants to purchase reliable long-term disability insurance coverage that is cost effective for him,which would be the best choice?

Accepted Answer

A) Professional occupation 
B) Any occupation 
C) Regular occupation 
D) Own occupation 
A) Professional occupation 
B) Any occupation 
C) Regular occupation 
D) Own occupation

Question 17

The Canada Health Act ensures that all provinces offer the same medical services.

Accepted Answer

A) True 
 B)False

Question 18

Some disadvantages of term insurance are that it increases in cost when you renew it and that it has no value when it matures or you discontinue your policy.

Accepted Answer

A) True 
 B)False

Question 19

The Canada Health Act dictates that the provinces provide minimum universal standards of health care coverage.

Accepted Answer

A) True 
 B)False

Question 20

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?

Accepted Answer

A) Universal life with level term insurance 
B) Term to 100 
C) Whole life 
D) Universal Life with YRT 
A) Universal life with level term insurance 
B) Term to 100 
C) Whole life 
D) Universal Life with YRT

The death benefit and cash values are not guaranteed in a universal life insurance contract but are in whole life.

Over 30 percent of Canadians over age 65 receive some kind of kind of care due to long-term health problems.

While the Canada Health Act is federal legislation,it is the responsibility of the provinces and territories to Administer and deliver health care services.

Whole life insurance has a premium that

Which of the following statements is true regarding disability insurance?

Which of the following is not an important consideration from the employer's perspective in sponsoring a group benefits plan?

The income method,used to calculate your life insurance coverage,multiplies your current annual income by

Disability insurance coverage will replace all your lost income while disabled.

A disadvantage of whole life policies is that

Mortgage life insurance is usually the best deal because the policy owners get a group discount through the lender.

The income method,basing life insurance needs on multiples of current income,is the most useful method for determining how much life insurance a person should buy.

Term life insurance is considered temporary insurance,since the policy is in effect for only a relatively short period of time.

What would be the out-of-pocket cost to an individual whose long-term care policy includes a 20 percent co-insurance clause? A current long-term illness has resulted in total expenses of $250000.

The similarity between disability income and long-term care insurance is

If Tom is a technology consultant and wants to purchase reliable long-term disability insurance coverage that is cost effective for him,which would be the best choice?

The Canada Health Act ensures that all provinces offer the same medical services.

Some disadvantages of term insurance are that it increases in cost when you renew it and that it has no value when it matures or you discontinue your policy.

The Canada Health Act dictates that the provinces provide minimum universal standards of health care coverage.

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters

Exam 3: Protecting Your Wealth - Health and Life Insurance

The death benefit and cash values are not guaranteed in a universal life insurance contract but are in whole life.

Over 30 percent of Canadians over age 65 receive some kind of kind of care due to long-term health problems.

While the Canada Health Act is federal legislation,it is the responsibility of the provinces and territories to Administer and deliver health care services.

Whole life insurance has a premium that

Which of the following statements is true regarding disability insurance?

Which of the following is not an important consideration from the employer's perspective in sponsoring a group benefits plan?

The income method,used to calculate your life insurance coverage,multiplies your current annual income by

Disability insurance coverage will replace all your lost income while disabled.

A disadvantage of whole life policies is that

Mortgage life insurance is usually the best deal because the policy owners get a group discount through the lender.

The income method,basing life insurance needs on multiples of current income,is the most useful method for determining how much life insurance a person should buy.

Term life insurance is considered temporary insurance,since the policy is in effect for only a relatively short period of time.

What would be the out-of-pocket cost to an individual whose long-term care policy includes a 20 percent co-insurance clause? A current long-term illness has resulted in total expenses of $250000.

The similarity between disability income and long-term care insurance is

If Tom is a technology consultant and wants to purchase reliable long-term disability insurance coverage that is cost effective for him,which would be the best choice?

The Canada Health Act ensures that all provinces offer the same medical services.

Some disadvantages of term insurance are that it increases in cost when you renew it and that it has no value when it matures or you discontinue your policy.

The Canada Health Act dictates that the provinces provide minimum universal standards of health care coverage.

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Tools for Financial Planning - Using Tax Concepts for Planning

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing,Managing and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters