Question 1

Consumer awareness of life insurance has changed little over the years.

Accepted Answer

A) True 
 B)False

Question 2

The Multiple of Income method of determining life insurance needs:

Accepted Answer

A)  assumes you have only two children.
B)  assumes your spouse does not work.
C)  assumes your insurance needs are complex.
D)  uses your annual income as the sole factor.
E)  assumes your spouse is in an occupation with an uncertain future.F) B) and E)
G) None of the above

Question 3

Universal life,variable life,and adjustable life are types of term life insurance.

Accepted Answer

A) True 
 B)False

Question 4

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

Accepted Answer

A)  Straight
B)  Renewable
C)  Convertible
D)  Decreasing
E)  Return-of-premiumF) D) and E)
G) A) and E)

Question 5

What is life insurance? What is its purpose and principle?

Accepted Answer

Life insurance is a contract between an ...

Question 6

How frequently does the premium for a whole life policy change during the insured's life?

Accepted Answer

A)  Every year
B)  Every two years
C)  Every five years
D)  Every 10 years
E)  It never changesF) C) and D)
G) A) and D)

Question 7

Your annual income is $100,000.You have a spouse,two kids,a dog and a mortgage - a typical family.What is your life insurance need based on the easy method?

Accepted Answer

A)  $310,000
B)  $490,000
C)  $700,000
D)  $1,000,000
E)  $1,200,000F) A) and D)
G) A) and E)

Question 8

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a ____________ life insurance policy.

Accepted Answer

A)  individual
B)  whole
C)  large number
D)  permanent
E)  groupF) None of the above
G) D) and E)

Question 9

A life insurance policy puts a price on the life of the insured person.

Accepted Answer

A) True 
 B)False

Question 10

What should you consider before you buy life insurance?

Accepted Answer

A)  Your past sources of income
B)  Your cost of health insurance
C)  Your vacation benefits
D)  Your accumulated sick leave
E)  Your savingsF) A) and E)
G) B) and C)

Question 11

Using the "nonworking" spouse method,what should be the life insurance needs for a family whose youngest child is 7 years old?

Accepted Answer

A)  $50,000
B)  $70,000
C)  $90,000
D)  $110,000
E)  $140,000F) D) and E)
G) A) and E)

Question 12

Which of the following offers many features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance?

Accepted Answer

A)  whole life insurance.
B)  term life insurance.
C)  modified life insurance.
D)  single-premium insurance.
E)  a variable annuity.F) A) and E)
G) None of the above

Question 13

Under the life income option,payments are made to the beneficiary for as long as he or she lives.

Accepted Answer

A) True 
 B)False

Exam 12: Life Insurance

What is life insurance? What is its purpose and principle?

Correct Answer
verified
Life insurance is a contract between an ...
View Answer

Consumer awareness of life insurance has changed little over the years.

Correct Answer
verified

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a ____________ life insurance policy.

Correct Answer
verified

What should you consider before you buy life insurance?

Correct Answer
verified

Using the "nonworking" spouse method,what should be the life insurance needs for a family whose youngest child is 7 years old?

Correct Answer
verified

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

Correct Answer
verified

Your annual income is $100,000.You have a spouse,two kids,a dog and a mortgage - a typical family.What is your life insurance need based on the easy method?

Correct Answer
verified

A life insurance policy puts a price on the life of the insured person.

Correct Answer
verified

How frequently does the premium for a whole life policy change during the insured's life?

Correct Answer
verified

Which of the following offers many features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance?

Correct Answer
verified

The Multiple of Income method of determining life insurance needs:

Correct Answer
verified

Universal life,variable life,and adjustable life are types of term life insurance.

Correct Answer
verified

Under the life income option,payments are made to the beneficiary for as long as he or she lives.

Correct Answer
verified

Exam 12: Life Insurance

What is life insurance? What is its purpose and principle?

Correct AnswerverifiedLife insurance is a contract between an ...View AnswerShow Answer

Consumer awareness of life insurance has changed little over the years.

Correct AnswerverifiedShow Answer

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a ____________ life insurance policy.

Correct AnswerverifiedShow Answer

What should you consider before you buy life insurance?

Correct AnswerverifiedShow Answer

Using the "nonworking" spouse method,what should be the life insurance needs for a family whose youngest child is 7 years old?

Correct AnswerverifiedShow Answer

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

Correct AnswerverifiedShow Answer

Your annual income is $100,000.You have a spouse,two kids,a dog and a mortgage - a typical family.What is your life insurance need based on the easy method?

Correct AnswerverifiedShow Answer

A life insurance policy puts a price on the life of the insured person.

Correct AnswerverifiedShow Answer

How frequently does the premium for a whole life policy change during the insured's life?

Correct AnswerverifiedShow Answer

Which of the following offers many features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance?

Correct AnswerverifiedShow Answer

The Multiple of Income method of determining life insurance needs:

Correct AnswerverifiedShow Answer

Universal life,variable life,and adjustable life are types of term life insurance.

Correct AnswerverifiedShow Answer

Under the life income option,payments are made to the beneficiary for as long as he or she lives.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Life insurance is a contract between an ...
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
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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