Exam 8: Insuring Your Life

Choose the word or phrase in [ ] which 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. -You can learn about the financial strength of an insurance company by checking Best's Insurance Reports and [the SEC | Standard and Poor's] rating system.

The return on term life insurance policies receive favorable tax treatment.

An attractive feature of whole life insurance is the availability of loans from the cash value.

Choose the word or phrase in [ ] which 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 premium on your term insurance will [increase | stay the same] with each renewal.

The face value on a whole life policy is likely to change over time.

Life insurance needs change dramatically over one's lifetime.

Nonforfeiture rights guarantee that a policy owner will not lose his or her _____.

Choose the word or phrase in [ ] which 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. -Group insurance is most likely to be for [a term | whole life].

Choose the word or phrase in [ ] which 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. -People share losses through [loss control | insurance].

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time.But you feel you will need life insurance for the rest of your life.You should choose a _____ insurance.

Choose the word or phrase in [ ] which 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. -A [variable life insurance | whole life insurance] policy does not guarantee a minimum return.

It is advisable to purchase life insurance from an insurance company that has been in business for at least 25 years.

The needs approach to determining the amount of life insurance considers a family's:

Multiple indemnity policies should be ignored as a source of funds when determining insurance needs because it offers no protection if the insured's death is due to natural causes.

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?

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

The primary purpose of life insurance is to provide:

Lump-sum distributions of death benefits are generally excluded from federal income tax.

A variable life policy is a policy in which the benefits are a function of the returns being generated on the investments selected by the policyholder.

If the objective of your life insurance program is to get the greatest death protection now for your insurance dollars,you should choose a(n)_____ insurance policy.