Question 1

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes.What type of term life insurance does Renee likely have?

Accepted Answer

A)  straight
B)  renewable
C)  convertible
D)  decreasing
E)  acceleratedF) A) and C)
G) B) and C)

Question 2

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 3

One important feature of a term life policy is its cash value.

Accepted Answer

A) True 
 B)False

Question 4

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy.

Accepted Answer

A)  11 to 15
B)  16 to 21
C)  20 to 25
D)  28 to 31
E)  35 to 40F) B) and D)
G) B) and E)

Question 5

A special form of the limited payment plan is the ____________ premium policy.

Accepted Answer

A)  double
B)  simple
C)  single
D)  compound
E)  equitableF) A) and D)
G) D) and E)

Question 6

If you have no dependents and your wife earns as much as you do,you have very simple insurance needs.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

Accepted Answer

A)  double indemnity.
B)  guaranteed insurability.
C)  an interest-adjusted index.
D)  the consumer price index.
E)  a present value index.F) C) and D)
G) A) and B)

Question 9

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 value of this fund.He is guaranteed a minimum death benefit but the death benefit can be higher,depending on the value of the fund.What type of life insurance does John likely have?

Accepted Answer

A)  ordinary whole life
B)  limited payment life
C)  variable life
D)  adjustable life
E)  universal lifeF) C) and E)
G) A) and C)

Question 10

A beneficiary is a person who:

Accepted Answer

A)  acts as a trustee of your insurance policy.
B)  is a guardian of your children.
C)  acts on your behalf.
D)  is designated to receive life insurance proceeds.
E)  acts as an agent handling your insurance policy.F) A) and B)
G) C) and D)

Question 11

Industrial life insurance is the most popular form of insurance today.

Accepted Answer

A) True 
 B)False

Question 12

Individuals and families purchase life insurance primarily to:

Accepted Answer

A)  pay liability claims resulting from accidents.
B)  fill financial needs created by the loss of the breadwinner.
C)  fund lavish retirement vacations.
D)  keep up with people with a similar financial situation.
E)  make early retirement possiblE.F) A) and D)
G) A) and B)

Question 13

List some of the important provisions found in most life insurance policies.

Accepted Answer

The naming of the beneficiary,the grace ...

Question 14

If your death would cause financial stress for your dependents,you should consider purchasing life insurance.

Accepted Answer

A) True 
 B)False

Question 15

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Accepted Answer

A)  straight
B)  renewable
C)  convertible
D)  decreasing
E)  acceleratedF) All of the above
G) C) and E)

Question 16

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

Life insurance is a contract between an ...

Question 18

The prices of life insurance policies:

Accepted Answer

A)  vary considerably from policy to policy.
B)  are relatively the same for all policies.
C)  are higher for females than males.
D)  have remained constant over time.
E)  are set by the government here in the United States.F) A) and B)
G) A) and D)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following was not a demographic used by the National Center for Health Statistics to analyze life expectancies for its life expectancy table released in 2006?

Accepted Answer

A)  race
B)  occupation
C)  sex
D)  age
E)  genderF) A) and E)
G) B) and C)

Exam 12: Life Insurance

If you have no dependents and your wife earns as much as you do,you have very simple insurance needs.

Correct Answer
verified

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

Correct Answer
verified

List some of the important provisions found in most life insurance policies.

Correct Answer
verified
The naming of the beneficiary,the grace ...
View Answer

Which of the following was not a demographic used by the National Center for Health Statistics to analyze life expectancies for its life expectancy table released in 2006?

Correct Answer
verified

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

Correct Answer
verified

A beneficiary is a person who:

Correct Answer
verified

If your death would cause financial stress for your dependents,you should consider purchasing life insurance.

Correct Answer
verified

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

Correct Answer
verified

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Correct Answer
verified

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy.

Correct Answer
verified

The prices of life insurance policies:

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes.What type of term life insurance does Renee likely have?

Correct Answer
verified

Industrial life insurance is the most popular form of insurance today.

Correct Answer
verified

Individuals and families purchase life insurance primarily to:

Correct Answer
verified

A special form of the limited payment plan is the ____________ premium policy.

Correct Answer
verified

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

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

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

Correct Answer
verified

One important feature of a term life policy is its cash value.

Correct Answer
verified

Exam 12: Life Insurance

If you have no dependents and your wife earns as much as you do,you have very simple insurance needs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

List some of the important provisions found in most life insurance policies.

Correct AnswerverifiedThe naming of the beneficiary,the grace ...View AnswerShow Answer

Which of the following was not a demographic used by the National Center for Health Statistics to analyze life expectancies for its life expectancy table released in 2006?

Correct AnswerverifiedShow Answer

Credit life insurance is used to repay a personal debt should the borrower die before doing so.

Correct AnswerverifiedShow Answer

A beneficiary is a person who:

Correct AnswerverifiedShow Answer

If your death would cause financial stress for your dependents,you should consider purchasing life insurance.

Correct AnswerverifiedShow Answer

A method of evaluating the cost of life insurance by taking into account the time value of money is called:

Correct AnswerverifiedShow Answer

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

Correct AnswerverifiedShow Answer

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy.

Correct AnswerverifiedShow Answer

The prices of life insurance policies:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes.What type of term life insurance does Renee likely have?

Correct AnswerverifiedShow Answer

Industrial life insurance is the most popular form of insurance today.

Correct AnswerverifiedShow Answer

Individuals and families purchase life insurance primarily to:

Correct AnswerverifiedShow Answer

A special form of the limited payment plan is the ____________ premium policy.

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow Answer

One important feature of a term life policy is its cash value.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The naming of the beneficiary,the grace ...
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
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified