Question 1

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

Accepted Answer

A)  Easy method
B)  DINK method
C)  Nonworking spouse method
D)  Family need method
E)  Soccer mom method

Question 2

A method of evaluating the cost of life insurance by taking into account the time value of money combines all of the following except:

Accepted Answer

A)  premium payments.
B)  dividends.
C)  supply and demand.
D)  cash-value buildup.
E)  present value analysis.

Question 3

Your annual income is $35,000.What is your life insurance need based on the easy method?

Accepted Answer

A)  $35,000
B)  $110,500
C)  $171,500
D)  $191,500
E)  over $200,000

Question 4

Group life and credit life insurance are generally permanent forms of insurance.

Accepted Answer

A) True 
 B)False

Question 5

Accelerated benefits are life insurance policy proceeds paid to the policyholder,who is terminally ill,before he or she dies.

Accepted Answer

A) True 
 B)False

Question 6

You probably have little or no need for life insurance if you are:

Accepted Answer

A)  a single person living with your parents.
B)  divorced and have two children.
C)  married and your spouse works.
D)  gainfully employed.
E)  a two-earner household with a mortgage.

Question 7

Permanent insurance can be limited payment,variable,adjustable,or universal life insurance.

Accepted Answer

A) True 
 B)False

Question 8

Life insurance is available from a wide range of private and public sources.

Accepted Answer

A) True 
 B)False

Question 9

Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation?

Accepted Answer

A)  annual income
B)  your current employer
C)  future earnings
D)  past earnings
E)  current assets

Question 10

According to a survey by Salary.com,the equivalent wage of a stay-at-home mom is approximately how much?

Accepted Answer

A)  $54,000
B)  $89,000
C)  $100,000
D)  $119,000
E)  $120,000

Question 11

The cash values of a ____________ life insurance policy fluctuate according to the yields earned by a separate fund,which can be a stock fund,a money market fund,or a bond fund.

Accepted Answer

A)  modified
B)  variable
C)  adjustable
D)  ordinary
E)  temporary

Question 12

Which statement is correct regarding mutual life insurance companies?

Accepted Answer

A)  Mutual insurance companies have stockholders.
B)  Nearly all mutual companies issue only nonparticipating policies.
C)  Premiums are lower than those offered by stock companies.
D)  Mutual companies do not pay policy dividends.
E)  A mutual company refunds part of the premium to its policyholders.

Question 13

A suicide clause means that the insurance company:

Accepted Answer

A)  can cancel the policy if suicide is proven.
B)  will pay the death benefit equal to the amount of the premium paid, if the insured dies by suicide during the first two years that the policy is in force.
C)  will pay only half the death benefits if the insured commits suicide.
D)  automatically pays the premium out of the policy's cash value.
E)  will not pay any death benefits if suicide is suspected.

Question 14

What are the two basic types of life insurance? Give examples of each.

Accepted Answer

The two basic types of life insurance ar...

Question 15

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

Accepted Answer

A)  Ordinary whole life
B)  Limited payment life
C)  Variable life
D)  Adjustable life
E)  Universal life

Question 16

Francesca Brown has a life insurance policy that provides her with protection for the next five years.However,she can get five more years of protection at the end of this term without having to have a medical examination because she will be less than 70 years old at that time.Her premiums will rise during each five-year period.What type of term life insurance does Francesca likely have?

Accepted Answer

A)  Straight
B)  Renewable
C)  Convertible
D)  Decreasing
E)  Accelerated

Question 17

Which of the following statements is true about group life insurance?

Accepted Answer

A)  Group life has been losing its popularity recently.
B)  The cost of insurance per $1,000 is the same for each employee, regardless of age.
C)  Group insurance is not a good bargain for older employees.
D)  Principles that apply to other forms of insurance do not apply to group life insurance.
E)  Group life is never considered the same thing as term life insurance.

Question 18

Most life insurance companies are mutuals.

Accepted Answer

A) True 
 B)False

Question 19

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

Accepted Answer

A)  The multiple of income method
B)  Easy method
C)  "Nonworking" spouse method
D)  Family need method
E)  DINK method

Question 20

Stock life insurance companies are owned by their policyholders.

Accepted Answer

A) True 
 B)False

Exam 12: Life Insurance

Accelerated benefits are life insurance policy proceeds paid to the policyholder,who is terminally ill,before he or she dies.

Correct Answer
verified

A suicide clause means that the insurance company:

Correct Answer
verified

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

Correct Answer
verified

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

Correct Answer
verified

According to a survey by Salary.com,the equivalent wage of a stay-at-home mom is approximately how much?

Correct Answer
verified

Your annual income is $35,000.What is your life insurance need based on the easy method?

Correct Answer
verified

The cash values of a ____________ life insurance policy fluctuate according to the yields earned by a separate fund,which can be a stock fund,a money market fund,or a bond fund.

Correct Answer
verified

What are the two basic types of life insurance? Give examples of each.

Correct Answer
verified
The two basic types of life insurance ar...
View Answer

Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation?

Correct Answer
verified

Group life and credit life insurance are generally permanent forms of insurance.

Correct Answer
verified

A method of evaluating the cost of life insurance by taking into account the time value of money combines all of the following except:

Correct Answer
verified

Correct Answer
verified

Which statement is correct regarding mutual life insurance companies?

Correct Answer
verified

Life insurance is available from a wide range of private and public sources.

Correct Answer
verified

Stock life insurance companies are owned by their policyholders.

Correct Answer
verified

Most life insurance companies are mutuals.

Correct Answer
verified

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

Correct Answer
verified

Which of the following statements is true about group life insurance?

Correct Answer
verified

Permanent insurance can be limited payment,variable,adjustable,or universal life insurance.

Correct Answer
verified

You probably have little or no need for life insurance if you are:

Correct Answer
verified

Exam 12: Life Insurance

Accelerated benefits are life insurance policy proceeds paid to the policyholder,who is terminally ill,before he or she dies.

Correct AnswerverifiedShow Answer

A suicide clause means that the insurance company:

Correct AnswerverifiedShow Answer

Which method of determining life insurance needs is designed specifically for a working couple with no dependents?

Correct AnswerverifiedShow Answer

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

Correct AnswerverifiedShow Answer

According to a survey by Salary.com,the equivalent wage of a stay-at-home mom is approximately how much?

Correct AnswerverifiedShow Answer

Your annual income is $35,000.What is your life insurance need based on the easy method?

Correct AnswerverifiedShow Answer

The cash values of a ____________ life insurance policy fluctuate according to the yields earned by a separate fund,which can be a stock fund,a money market fund,or a bond fund.

Correct AnswerverifiedShow Answer

What are the two basic types of life insurance? Give examples of each.

Correct AnswerverifiedThe two basic types of life insurance ar...View AnswerShow Answer

Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation?

Correct AnswerverifiedShow Answer

Group life and credit life insurance are generally permanent forms of insurance.

Correct AnswerverifiedShow Answer

A method of evaluating the cost of life insurance by taking into account the time value of money combines all of the following except:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which statement is correct regarding mutual life insurance companies?

Correct AnswerverifiedShow Answer

Life insurance is available from a wide range of private and public sources.

Correct AnswerverifiedShow Answer

Stock life insurance companies are owned by their policyholders.

Correct AnswerverifiedShow Answer

Most life insurance companies are mutuals.

Correct AnswerverifiedShow Answer

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation?

Correct AnswerverifiedShow Answer

Which of the following statements is true about group life insurance?

Correct AnswerverifiedShow Answer

Permanent insurance can be limited payment,variable,adjustable,or universal life insurance.

Correct AnswerverifiedShow Answer

You probably have little or no need for life insurance if you are:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The two basic types of life insurance ar...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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