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Exam 8: Insuring Your Life

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Question 21

Multiple Choice

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Term life insurance is characterized by

A) level annual premiums throughout life.
B) premium amounts related to age.
C) inappropriateness for most person's life insurance needs.
D) non-convertibility.
E) cash value.

F) C) and D)
G) A) and E)

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Question 22

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Life insurance premiums are generally tax deductible by the insured.

A) True
B) False

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Question 23

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A participating policy

One should typically name both primary and contingent beneficiaries for life insurance policies.

The _________ option allows a terminally ill insured to receive a percentage of the death benefit for immediate use.

An attractive feature of whole life insurance is the availability of loans from the cash value.

____ and ____ are both relatively expensive types of decreasing-term life insurance.

A variable life policy combines life insurance coverage with investment options.

Which of the following is not characteristic of universal life insurance?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Credit life insurance is generally considered to be a [good | poor] life insurance buy.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -An insured can borrow from the [cash | face] value of her life insurance policy.

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time,but you feel you will need life insurance for the rest of your life.You should choose ____ insurance.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Insurance is a tool that can lessen [economic | accident] risk.

Credit life insurance is often a requirement of credit card issuers.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The cash value will build more quickly with a [low-load | traditional] whole life policy.

Life insurance needs change dramatically over one's lifetime.

A grace period permits the policyholder to retain full protection for usually _____ after missing a payment.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -A life insurance policy should contain which of the following? [policy description | co-insurance clause].

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Group insurance is most likely to be [term | whole life].

If the objective of your life insurance program is to get the greatest death protection now for your insurance dollars,you should choose ____ insurance.