Question 1

You should be quick to switch life insurance policies based upon comparative returns to cash value.

Accepted Answer

A) True 
 B)False

Question 2

Modified whole life attempts to meet the life cycle needs of the family.

Accepted Answer

A) True 
 B)False

Question 3

Leaving a close relative out of your will may later provide a basis for contesting the validity of the will.

Accepted Answer

A) True 
 B)False

Question 4

With a renewable term life policy you may extend your coverage for an additional period,but you must first pass a medical examination.

Accepted Answer

A) True 
 B)False

Question 5

Unfunded estate liquidity may exist at death if

Accepted Answer

A)  you have a life insurance protection gap.
B)  you need to plan for the retirement need of your survivors.
C)  your survivors have insufficient cash to pay immediate death related expenses.
D)  you do not have the correct type of life insurance.

Question 6

The face amount for a particular life insurance policy is equal to

Accepted Answer

A)  the amount you would receive if you canceled the insurance policy.
B)  the sum of all past premiums.
C)  the sum of all past premiums minus dividends paid.
D)  the amount of death protection without accidental death benefits or reduction for policy loans.

Question 7

In the will,you may name a guardian for your children.

Accepted Answer

A) True 
 B)False

Question 8

Given the same face amount of insurance protection,which of the following would have the most rapid cash value build-up?

Accepted Answer

A)  Renewable term insurance
B)  Whole life insurance
C)  Limited payment ordinary life insurance
D)  Modified whole life insurance

Question 9

Universal life differs from traditional whole life,because

Accepted Answer

A)  universal life explicitly divides premium payments into a death protection component and an investment component.
B)  universal life pays a guaranteed interest return over the life of the policy's cash value.
C)  those with traditional whole life can borrow against their cash value,whereas those with universal life cannot.
D)  those with universal whole life can borrow against their cash value,whereas those with traditional whole life cannot.

Question 10

With an adjustable life insurance policy,

Accepted Answer

A)  you may adjust both the face amount and the premium payments.
B)  you may adjust the face amount,but not the premium payments.
C)  you may adjust the premium payments,but not the face amount.
D)  you may adjust the payout feature on the policy.However,you are not able to adjust either the face amount or the premium payments.

Question 11

Universal life

Accepted Answer

A)  combines term protection and cash value buildup in one convenient policy.
B)  typically offers a better return on the cash value buildup than traditional whole life policies.
C)  permits the insured to vary premium payments within certain limits.
D)  does all of the above.

Question 12

Which one of the following is not true of the executor?

Accepted Answer

A)  The executor will normally be paid a fee for services performed.
B)  The named executor does not have the right to decline appointment as executor.
C)  Unless stated otherwise in the will,the executor must post bond to guarantee performance of duties.
D)  The executor manages the estate during probate.

Question 13

A single life policy

Accepted Answer

A)  may only provide benefits for a single beneficiary.
B)  pays out at the death of the single life insured.
C)  is only available for unmarried individuals.
D)  is only allowed to insure non-dependent adults.

Question 14

You must pay income taxes on the dividends received from participating life policies.

Accepted Answer

A) True 
 B)False

Question 15

A valid will may be automatically revoked by a change in family status.

Accepted Answer

A) True 
 B)False

Question 16

A survivorship joint life policy pays out at the first death.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following represents the most likely order from those who is likely to need insurance the most to who is most likely to need it the least?

Accepted Answer

A)  Adult with child,retired with spouse,young child
B)  Young child,retired with spouse,adult with child
C)  Retired with spouse,adult with child,young child
D)  Young child,adult with child,retired with spouse

Question 18

If a life insurance policy is renewable,

Accepted Answer

A)  the policy coverage can be renewed with no change in premiums.
B)  the policy coverage can be renewed without a medical exam.
C)  the policy coverage can be renewed for a higher face amount.
D)  the policy coverage can be renewed with no change in premiums and without a medical exam.

Question 19

An old will can

Accepted Answer

A)  be revoked by simply stating so in a new will.
B)  not be automatically revoked because of either marriage,divorce or the birth of a child.
C)  be revoked only with the consent of a probate judge.
D)  never be amended or changed.

Question 20

Death protection is not the most important reason for purchasing life insurance.

Accepted Answer

A) True 
 B)False

Exam 15: Life Insurance and Estate Planning: Protecting Your Dependents

If a life insurance policy is renewable,

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Which one of the following is not true of the executor?

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Death protection is not the most important reason for purchasing life insurance.

Correct AnswerverifiedShow Answer

Leaving a close relative out of your will may later provide a basis for contesting the validity of the will.

Correct AnswerverifiedShow Answer

Unfunded estate liquidity may exist at death if

Correct AnswerverifiedShow Answer

A single life policy

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The face amount for a particular life insurance policy is equal to

Correct AnswerverifiedShow Answer

Modified whole life attempts to meet the life cycle needs of the family.

Correct AnswerverifiedShow Answer

A survivorship joint life policy pays out at the first death.

Correct AnswerverifiedShow Answer

Given the same face amount of insurance protection,which of the following would have the most rapid cash value build-up?

Correct AnswerverifiedShow Answer

You should be quick to switch life insurance policies based upon comparative returns to cash value.

Correct AnswerverifiedShow Answer

Which of the following represents the most likely order from those who is likely to need insurance the most to who is most likely to need it the least?

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With an adjustable life insurance policy,

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An old will can

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You must pay income taxes on the dividends received from participating life policies.

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A valid will may be automatically revoked by a change in family status.

Correct AnswerverifiedShow Answer

Universal life differs from traditional whole life,because

Correct AnswerverifiedShow Answer

In the will,you may name a guardian for your children.

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Universal life

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With a renewable term life policy you may extend your coverage for an additional period,but you must first pass a medical examination.

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