Exam 8: Insuring Your Life

Which of the following is not characteristic of a universal life insurance policy?

_____ is a common provision in many term policies.

The multiple-of-earnings approach to evaluate life insurance needs is simplistic but can be unreliable.

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

The basic purpose of insurance is to:

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. -Jonathan Blake purchased an insurance policy of $150,000,and nominated his wife,Rebecca Blake as his primary beneficiary,and his son,Nathan Blake as his secondary beneficiary.Assuming that Rebecca and Nathan survive Jonathan,the benefit of the insurance shall be received by [Rebecca Blake | Nathan Blake].

The needs approach can determine your life insurance requirements with a single step.

Unbundling in universal life insurance means that the cost of the insurance and savings elements are identified separately for the policy owner to see.

A guaranteed purchase option is when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary.

The three major categories of life insurance are term,straight life,and limited payment.

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 [viatical settlement | guaranteed purchase option] is when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary.

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. -An insured can borrow from the [cash | face] value of his/her life insurance policy.

A waiver of premium benefit excuses premium payment when the insured is unemployed.

Annual term insurance premiums increase as you get older while whole life insurance premiums remain constant.

Life insurance cash value may be collected by terminating the policy.

_____ and _____ are both relatively expensive types of decreasing-term life 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 life insurance agent who takes her profession seriously is likely to have earned the [CPCU | CLU] professional certification.

Which of the following companies does NOT rate the financial strength of life insurance companies?

Generally,the period-certain settlement option is desirable because life insurance companies pay higher than average interest rates.

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. -Using the needs approach,we [deduct | add] resources from needs to calculate how much life insurance an individual requires.