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Which of the following insurance is intended to provide a limited choice of investments and an insurance component in the event of death?


A) Whole life
B) Universal life
C) Term insurance
D) Mortgage life

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Life insurance affects everything except your


A) liquidity.
B) net worth.
C) life expectancy.
D) peace of mind.

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Whole life policies can be structured to provide a higher level of death benefits to beneficiaries in the early years of the policies or for the policies to be paid off in a certain time period,for example twenty years.

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During the time the policy is in effect,term life insurance has a good savings and investment component.

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The premiums charged on life insurance will be higher if the individual is more likely to ________ in the near future.

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A limited payment option on a whole life policy pays a smaller share of the policy face value to beneficiaries during the first five years of the policy.

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Term life insurance is


A) often available in group policies through employers.
B) less expensive when you renew it.
C) pure insurance with no savings feature.
D) Both A and C

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A lump-sum insurance settlement would be most appropriate for


A) a surviving spouse with small children.
B) parents living in a nursing home.
C) a disciplined beneficiary.
D) a former spouse.

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The most accurate method of determining life insurance needs is


A) the income method.
B) the budget method.
C) subtracting your annual income from $1 million.
D) having enough insurance to provide $50,000 per year for 20 years.

Correct Answer

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The services that insurance companies provide should not be a factor in selecting a life insurance company.

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