FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Life Insurance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Which type of life insurance policy combines term insurance with an investment option?

A) Whole life
B) Ordinary life
C) Universal life
D) Adjustable life
E) Extended life

F) All of the above
G) C) and E)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

The Multiple of Income method of determining life insurance needs:

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 D)
G) A) and B)

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

Which statement is correct regarding mutual life insurance companies?

A beneficiary can be a spouse or child who:

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

A second-to-die life insurance policy pays a death benefit when the first spouse dies.

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?

Which statement is correct regarding stock life insurance companies?

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

Which is a correct statement about life insurance?

Most life insurance companies are mutuals.

John Camey has a life insurance policy that is tied to a separate stock fund.The cash value of his insurance policy depends on the yields earned in this fund and is not guaranteed.What type of life insurance does John likely have?

A term insurance policy pays a benefit only if you die during the period that the policy covers.

Which one of the following is a price quote service that offers convenient and free,no-obligation life insurance premium comparisons?

Suppose your annual premium for a $30,000,20-year limited-payment policy is $600 over the 20-year period.The cash value of your policy at the end of the 20 years is $10,000.Assume that you could have invested the annual premium in a mutual fund yielding 7 percent annually.What is the net cost of your insurance for the 20-year period? Use a factor of 40.995 for your time value of money calculation.

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

If life insurance proceeds are left with the company,the company acts as trustee and pays the interest to the beneficiary.

The 2001 Mortality Table separates the mortality experience by:

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

The easy method of determining life insurance needs is based on the rule of thumb that a "typical family" will need about 70 percent of your salary for seven years.