Exam 8: Insuring Your Life

A(n) _____ is a life insurance policy that pays policy dividends reflecting the difference between the premiums that are charged and the amount of premium necessary to fund the actual mortality experience of the company.

(Multiple Choice)

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Question 61

Insurance is a tool that can reduce your _____ risk.

(Multiple Choice)

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Question 62

Whole life policies typically provide a high investment rate of return.

(True/False)

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Question 63

You can learn about the financial stability of an insurance company by checking _____ rating system.

(Multiple Choice)

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Question 64

The availability of group coverage through employee benefit programs should be considered when developing a life insurance program.

(True/False)

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Question 65

Insurance companies make profit by:

(Multiple Choice)

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Question 66

The need for life insurance increases with children.

(True/False)

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Question 67

Only one agent should be consulted for discussing personal financial needs and insurance requirements while buying life insurance.

(True/False)

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Question 68

Insurance companies use actuarial data to measure the:

(Multiple Choice)

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Question 69

INSTRUCTIONS: Choose the word or phrase in [ ] that 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. Life insurance proceeds paid to your heirs [ are | are not ] generally subject to state or federal income taxes.

(Short Answer)

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Question 70

If a term life insurance policy is convertible, it can be:

(Multiple Choice)

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Question 71

A life insurance policy allows the owner to name both a primary beneficiary and contingent beneficiaries.

(True/False)

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Question 72

The purchase of insurance is a common form of _____ by the insured.

(Multiple Choice)

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Question 73

Guaranteed renewable term insurance allows you to renew a policy for another term without qualifying medically.

(True/False)

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Question 74

If a named beneficiary does not survive an insured, the death benefits of the policy revert to the insurance company.

(True/False)

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Question 75

INSTRUCTIONS: Choose the word or phrase in [ ] that 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 [ policyholder | insurance company ] makes the investment decisions with variable life insurance.

(Short Answer)

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Question 76

Underwriters can predict whether or not you will suffer a loss this year.

(True/False)

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Question 77

A(n) _____ provision enables you to purchase a term life policy again at its expiration.

(Multiple Choice)

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Question 78

Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy, he will receive the cash value. His plan is a _____ policy.

(Multiple Choice)

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Question 79

Which of the following represents a disadvantage of a whole life insurance policy?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 107

A(n) _____ is a life insurance policy that pays policy dividends reflecting the difference between the premiums that are charged and the amount of premium necessary to fund the actual mortality experience of the company.

Insurance is a tool that can reduce your _____ risk.

Whole life policies typically provide a high investment rate of return.

You can learn about the financial stability of an insurance company by checking _____ rating system.

The availability of group coverage through employee benefit programs should be considered when developing a life insurance program.

Insurance companies make profit by:

The need for life insurance increases with children.

Only one agent should be consulted for discussing personal financial needs and insurance requirements while buying life insurance.

Insurance companies use actuarial data to measure the:

If a term life insurance policy is convertible, it can be:

A life insurance policy allows the owner to name both a primary beneficiary and contingent beneficiaries.

The purchase of insurance is a common form of _____ by the insured.

Guaranteed renewable term insurance allows you to renew a policy for another term without qualifying medically.

If a named beneficiary does not survive an insured, the death benefits of the policy revert to the insurance company.

Underwriters can predict whether or not you will suffer a loss this year.

A(n) _____ provision enables you to purchase a term life policy again at its expiration.

Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy, he will receive the cash value. His plan is a _____ policy.

Which of the following represents a disadvantage of a whole life insurance policy?

Understanding the Financial Planning Process

Developing Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds and Real Estate

Planning for Retirement

Preserving Your Estate

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