Quiz 12: Life Insurance

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

Most American families face a substantial loss when one spouse dies unexpectedly.

Life insurance is one of the most important and expensive purchases you may ever make.

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

Life insurance proceeds may be used to provide an education or income for children.

Life insurance proceeds may be used to provide a retirement income.

Most insurance companies can determine how long a particular person will live.

Single persons living alone usually have little or no need for life insurance.

Households with small children usually have the greatest need for life insurance.

Before you buy life insurance,you should determine whether you really need life insurance.

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

Two-earner couples may have a moderate need for life insurance,especially if they have a mortgage or other large debts.

How much insurance one should carry is an important question for every person who owns or intends to buy life insurance.

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

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.

The DINK method of determining life insurance needs assumes that your spouse will continue to work after your death.

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

The "family need" method of determining life insurance needs provides a thorough estimation of your life insurance needs.

Mutual companies issue only nonparticipating policies.

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

The premium for a whole life policy increases with your age.

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

You can purchase life insurance from two types of life insurance companies.

Stock life insurance companies are owned by their policyholders.

Most life insurance companies are mutuals.

In a participating policy,a part of the premium is refunded to the policyholder annually.

The premium that is refunded to policyholders of a participating policy is called the policy dividend.

Two basic types of life insurance are temporary and permanent insurance.

Permanent insurance can be limited payment,variable,adjustable,or universal life insurance.

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

Term insurance is protection for a specified period of time,usually 1,5,10,or 20 years.

Term insurance continues for the entire term even if you stop paying the premiums.

Term insurance is a basic,"no frills" form of life insurance and is the best value for most consumers.

Term life insurance premiums decrease as you get older.

The coverage of term insurance ends at the conclusion of the term,but you can continue it if you have a renewability option.

If you have convertible term insurance,you can exchange it for a whole life policy without a medical examination and at a higher premium.

Decreasing term life insurance is no longer available.

The amount of your whole life insurance premium for each $1,000 of coverage depends primarily on the age at which you purchase the insurance.

Because the premium payment period for a limited payment policy is shorter than that of a whole life policy,the annual premium is higher.

A special form of the limited payment plan is the single-premium policy.In this type of contract,you make only one very large premium payment.

The cash values of a variable life insurance policy increase at a constant rate over time.

When you purchase a variable life policy,the insurance company assumes the risk of poor investment performance.

Universal life is a whole life policy that combines term insurance with an investment option.

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

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

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

An important provision in every life insurance policy is the right to name your beneficiary.

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

The incontestability clause stipulates that the insurance company can dispute the validity of the policy anytime during the insured's lifetime.

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Even though it is expensive,you should add the accidental death benefit to your life insurance policy,because your chances of dying in the exact manner stated in the policy are very high.

When your life insurance objectives change,you should review the policy carefully and discuss its provisions with your agent.

A beneficiary is a person designated to receive something,such as life insurance proceeds,from the insured.

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

One important feature of a whole life policy is the nonforfeiture clause,which prevents the forfeiture of accrued benefits if you choose to drop the policy.

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

The guaranteed insurability option is desirable if you anticipate the need for additional life insurance in the future.

The cost-of-living protection rider is designed to help prevent inflation from eroding the purchasing power of the protection your policy provides.

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

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

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

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

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

When buying life insurance,as a rule,you should deal with companies rated superior or excellent by the major rating agencies.

A chartered life underwriter is a life insurance agent who has passed a series of college-level examinations on insurance and related subjects.

The lump-sum payment settlement option is the least used option.

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

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

An annuity is a financial contract written by an insurance company to provide you with a regular income.

With a variable life insurance policy,many people choose to supplement their retirement income by withdrawing some of the investment portion as an annuity to provide regular income.

Life insurance proceeds may be used to: A)pay off a home mortgage. B)cover funeral costs. C)make charitable bequests. D)pay estate taxes. E)All of these

Which is a correct statement about life insurance? A)Life insurance provides liquidity at the time of death. B)Life insurance is still more often bought than sold. C)Life insurance is one of the least expensive purchases you may ever make. D)Choosing the right policy takes only a few minutes. E)Consumer awareness of life insurance has changed significantly over the years.

Individuals and families purchase life insurance primarily to: A)pay liability claims resulting from accidents. B)protect someone who depends on them from financial losses caused by their death. C)fund lavish retirement vacations. D)keep up with people with a similar financial situation. E)make early retirement possible.

In the 1950s,the life insurance industry developed: A)the forces of supply and demand. B)the insurance division of the federal government. C)the forces of competition. D)mortality tables. E)the principle of life insurance.

The 2001 Mortality Table separates the mortality experience by: A)age. B)income level. C)occupation. D)domicile. E)gender.

The life expectancy of a female at the age of 30 is 52.0 years.It means that: A)a 30-year-old female has the highest probability of dying. B)a 30-year-old female has the highest probability of living. C)females alive at 30 years of age are expected to live an additional 52 years on average. D)52.0 is the average age at which all females,age 30,will die. E)very few 30-year-old females will live past the age of 82.

Which of the following are common uses of life insurance proceeds? A)Provide an education for children B)Set up an estate plan C)Establish a regular income for survivors D)Accumulate savings E)All of these

What should you consider before you buy life insurance? A)Your past sources of income B)Your cost of health insurance C)Your vacation benefits D)Your accumulated sick leave E)Your savings

You probably have little or no need for life insurance if you are: A)a single person living with your parents. B)divorced and have two children. C)married and your spouse works. D)gainfully employed. E)a two-earner household with a mortgage.

A two-earner couple likely will have: A)the greatest need for life insurance. B)no need for life insurance. C)a moderate need for life insurance,especially if they have a mortgage. D)the greatest need for an annuity. E)the exact same life insurance needs as single persons living alone.

Who has the greatest need for life insurance? A)Households with small children B)Singles living alone C)Singles living with parents D)Dual income couple E)Retired person

After determining that you need life insurance,you should then: A)consult a local insurance company agent. B)buy as much life insurance as you can afford. C)estimate your life insurance requirements. D)determine your life insurance objectives. E)evaluate the ratings of the insurance company.

The easy method of determining life insurance needs assumes that your family is: A)rich. B)poor. C)typical. D)young. E)old.

Your annual income is $45,000.What is your life insurance need based on the easy method? A)$220,500 B)$315,000 C)$345,000 D)$400,000 E)$450,000

Which method of determining life insurance needs is designed specifically for a working couple with no dependents? A)The multiple of income method B)Easy method C)"Nonworking" spouse method D)Family need method E)DINK method

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.

Insurance experts have estimated that extra costs of up to ________ a year may be required to replace the services of a homemaker in a family with small children. A)$3,000 B)$6,000 C)$10,000 D)$12,000 E)$15,000

The method of determining life insurance requirements that considers factors such as Social Security and your liquid assets is called the: A)easy method. B)single-income method. C)DINK method. D)"nonworking" spouse method. E)"family need" method.

Your annual income is $32,000.What is your life insurance need based on the easy method? A)$32,000 B)$96,000 C)$156,800 D)$200,000 E)$224,000

The DINK method of determining life insurance needs recommends adding an additional insurance cushion if your spouse is: A)healthy. B)employed in an occupation with a certain future. C)a non-working spouse. D)suffering from poor health. E)a senior citizen.

The total debts of you and your spouse include the following: mortgage,$200,000; auto loan,$16,000; credit card balance,$2,000; and personal debts of $4,000.Further,you estimate that your funeral will cost $6,000.Your spouse expects to continue to work after your death.What is your life insurance need using the DINK method? A)$117,000 B)$120,000 C)$200,000 D)$216,000 E)$222,000

Using the "nonworking" spouse method,what should be the life insurance needs for a family whose youngest child is 8 years old? A)$50,000 B)$70,000 C)$80,000 D)$100,000 E)$180,000

Using the "nonworking" spouse method,what should be the life insurance need for a family whose youngest child is 12 years old? A)$30,000 B)$50,000 C)$60,000 D)$100,000 E)$120,000

Catherine Carey has made the choice to stay home and raise her three kids while her husband works.She wants to determine her insurance needs.What method was specifically designed for someone in her situation? A)Easy method B)DINK method C)Nonworking spouse method D)Family need method E)Soccer mom method

Your annual income is $90,000.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? A)$310,000 B)$441,000 C)$630,000 D)$1,000,000 E)$1,200,000

Under the Multiple of Income method of estimating life insurance needs,what important factor is excluded from the calculation? A)Annual income B)Your current employer C)Future earnings D)Past earnings E)Current assets

Jeff Willis has five kids and a lot more debt than a typical family.What method would probably be the best method for him to use to calculate his insurance needs? A)Easy method B)DINK method C)Nonworking spouse method D)Family need method E)Soccer mom method

The insurance agent's rule of thumb that a typical family will need 70% of salary for seven years in order to adjust to the financial consequences of a wage-earner's death is known as which of the following estimation methods? A)Nonworking spouse B)Easy method C)DINK method D)Family need E)Soccer mom

Which of the following is false? A)Stock companies generally sell nonparticipating policies. B)A participating policy has a somewhat higher premium than a nonparticipating policy. C)Mutual companies generally sell participating policies. D)You can expect to receive a policy dividend from a stock company. E)Part of the premium is refunded to the policyholder in a participating policy.

Most participating policies are sold by: A)federal government agencies. B)state insurance commissioners. C)mutual life insurance companies. D)stock life insurance companies. E)investment banks.

Which statement is correct regarding mutual life insurance companies? A)Mutual insurance companies have stockholders. B)Nearly all mutual companies issue only nonparticipating policies. C)Premiums are lower than those offered by stock companies. D)Mutual companies do not pay policy dividends. E)A mutual company refunds part of the premium to its policyholders.

Which statement is correct regarding stock life insurance companies? A)A stock company sells participating policies. B)A stock company always charges higher premiums than mutual companies. C)A stockholder receives a policy dividend. D)A stock company generally sells nonparticipating policies. E)A stock company is owned by policyholders.

Which type of insurance is sometimes called temporary life insurance? A)Whole life insurance B)Term insurance C)Straight life D)Ordinary life E)Cash value life

Which one of the following statements correctly applies to term insurance? A)The premiums remain constant. B)The policy builds cash value. C)Protection is for a specified period of time. D)It usually is more expensive than whole life insurance. E)The investment performance varies with the stock market.

The most common type of permanent life insurance is called: A)whole life. B)term life. C)universal life. D)modified life. E)variable life.

Which statement is correct about whole life insurance? A)At first,it is cheaper than term life. B)It builds up cash value. C)The premiums increase with your age. D)It is the best choice for people who plan to keep the policy for a short term. E)It is the same thing as term life insurance.

Which type of life insurance policy requires you to pay premiums for a stipulated period,usually 20 or 30 years,or until you reach a specified age? A)Modified life policy B)Variable life policy C)Adjustable life policy D)Limited payment policy E)Endowment policy

A special form of the limited payment plan is the ________ premium policy. A)double B)simple C)single D)compound E)equitable

The cash values of a ________ life insurance policy fluctuate according to the yields earned by a separate fund,which can be a stock fund,a money market fund,or a bond fund. A)modified B)variable C)adjustable D)ordinary E)temporary

Subject to certain minimums,which life insurance,first introduced in 1979,has a minimum amount that must be paid to cover the insurance portion? A)Whole life B)Ordinary life C)Universal life D)Adjustable life E)Variable life

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

Some experts claim that credit life insurance policies are: A)the nation's biggest rip-off. B)the best buys. C)useful for creditors and debtors alike. D)less expensive than term life insurance. E)an excellent investment.

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. A)individual B)whole C)large number D)permanent E)group

Fundamentally,group life insurance is ________ insurance. A)term B)whole life C)ordinary life D)permanent E)universal life

Which of the following statements is true about group life insurance? A)Group life has been losing its popularity recently. B)The cost of insurance per $1,000 is the same for each employee,regardless of age. C)Group insurance is not a good bargain for older employees. D)Principles that apply to other forms of insurance do not apply to group life insurance. E)Group life is never considered the same thing as term life insurance.

Lori Simpson is thinking about purchasing some life insurance.She goes to a company where the policyholders are essentially the owners of the company.What type of life insurance company has she visited? A)Stock B)Debt C)Mutual D)Exclusionary E)Cooperative

Jerry Lewis is thinking about purchasing some life insurance.He goes to a company that is owned by shareholders.What type of life insurance company has he visited? A)Stock B)Debt C)Mutual D)Exclusionary E)Cooperative

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? A)Straight B)Renewable C)Convertible D)Decreasing E)Accelerated

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? A)Straight B)Renewable C)Convertible D)Decreasing E)Accelerated

Renee Wilson 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? A)Straight B)Renewable C)Convertible D)Decreasing E)Accelerated

Which of the following does not refer to permanent insurance? A)Whole life B)Straight life C)Ordinary life D)Cash value life E)Term life

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? A)Straight B)Renewable C)Convertible D)Decreasing E)Return-of-premium

Tim Bridges has a life insurance policy where he makes payments of $325 per year until he reaches the age of 65.His policy is then "paid up" for life.His beneficiaries will receive the face value upon his death.What type of life insurance policy does Tim likely have? A)Ordinary life B)Limited payment C)Variable life D)Adjustable life E)Universal life

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)Ordinary whole life B)Limited payment life C)Variable life D)Adjustable life E)Universal life

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have? A)Ordinary whole life B)Limited payment life C)Variable life D)Adjustable life E)Universal life

Russell Lowe has a life insurance policy that allows him to change his premium without changing his coverage.He can also access his cash value with a policy loan or a withdrawal.What type of insurance does Russell likely have? A)Ordinary whole life B)Limited payment life C)Variable life D)Adjustable life E)Universal life

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is another name for this policy? A)Cash Value B)Par C)Nonpar D)Rider E)Double Indemnity

Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and daughter.This modification has most likely been done by attaching a(n)________ to the policy. A)accelerated benefits clause B)policy dividend C)guaranteed insurability clause D)second-to-die rider E)double indemnity provision

Lisa Smith has her age listed on her driver's license as being three years younger than it actually is.This is also how old she tells her insurance company she is.Her insurance company has discovered she lied about her age.What provision of her life insurance contract states that her benefits will be what her premium would have bought if she had been truthful about her age? A)Policy loan B)Misstatement of age C)Cost-of-living protection D)Guaranteed insurability E)Grace period

Your life insurance policy is valuable only if it: A)meets your objectives. B)makes you rich. C)makes your beneficiaries rich. D)serves as collateral for a loan. E)pays you at least 7.5 percent interest.

A beneficiary can be a spouse or child who: 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 your life insurance proceeds. E)acts as an agent handling your insurance policy.

The grace period normally allows ________ days to elapse,during which time the premium may be paid on an insurance policy without penalty. A)11 to 15 B)16 to 21 C)20 to 25 D)28 to 31 E)35 to 40

A suicide clause means that the insurance company: A)can cancel the policy if suicide is proven. B)will pay a death benefit equal to the amount of the premium paid,if the insured dies by suicide during the first two years that the policy is in force. C)will pay only half the death benefits if the insured commits suicide. D)automatically pays the premium out of the policy's cash value. E)will not pay any death benefits if suicide is suspected.

If a provision for an accidental death benefit is attached to a whole life insurance policy,then this provision is referred to as a: A)rider. B)waiver of premium. C)automatic premium loan. D)beneficiary. E)incontestability clause.

Which statement is false regarding switching policies? A)An author noted that half of those who buy whole or universal life drop them within 10 years. B)The insurance industry is regulated by state insurance commissioners. C)Your need for life insurance coverage will change over time. D)A new life insurance policy will cost more as you get older. E)You will always be insurable if you switch policies.

An authoritative rating guide to the financial stability of the nation's insurers is published by all of the following except: A)Dow Jones Company. B)Standard & Poor's. C)Moody's Rating Service. D)A)M.Best Company. E)Weiss Research.

A method of evaluating the cost of life insurance by taking into account the time value of money combines all of the following except: A)premium payments. B)dividends. C)supply and demand. D)cash-value buildup. E)present value analysis.

In determining the cost of insurance,if your insurance agent does not give you an interest-adjusted index upon request,then your best bet is to: A)buy the policy anyway. B)look for another agent. C)tell the agent that you are still thinking. D)tell the agent you will buy it later. E)complain to the Better Business Bureau.

What percent of all applicants who apply for life insurance are found to be insurable? A)58 B)68 C)78 D)88 E)98

The prices of life insurance policies: A)vary considerably among life insurance companies. 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.

After you buy new life insurance,you have a "free look" period of ________ days. A)10 B)20 C)30 D)40 E)50

Which of the following offers special features,including a stepped-up death benefit,a guaranteed minimum income benefit,or long-term care insurance that often carry additional fees and charges? A)Whole life insurance B)Term life insurance C)Modified life insurance D)Single-premium insurance E)A variable annuity

One of the ten golden rules when buying life insurance is to: A)buy from an unlicensed company. B)buy more life insurance than you need. C)select an agent who is incompetent. D)ask about lower premium rates for nonsmokers. E)not worry about reading and understanding your policy.

A settlement option that provides for payment of the life insurance proceeds in equal periodic installments for a specified number of years after your death is called a: A)flexible annuity. B)limited installment payment. C)life income option. D)lump-sum payment. E)proceeds left with the company.

Scott Carson wants to determine his life insurance needs.What method would identify his insurance needs as a range between five and ten times his annual income? A)Multiple of income method B)DINK method C)Nonworking spouse method D)'Family need' method E)Sample method

When comparing Universal Life policies with Whole Life policies,which of the following is typically an advantage of a Universal Life policy? A)Cash value accumulates B)You can access cash value only through a policy loan C)The policy will lapse if a specific premium is not paid each year D)You have control over your outlay E)Your premium cannot be changed

Which of the following questions are important to consider when choosing an insurance agent? A)Is your agent available when needed? B)Does your agent advise you to have a financial plan? C)Is your agent happy to answer questions? D)Does your agent keep up with changes in the insurance field? E)All of these

According to a survey by Salary.com,the equivalent wage of a stay-at-home mom is approximately how much? A)$54,000 B)$75,000 C)$100,000 D)$163,000 E)$175,000

Which type of life insurance policy provides coverage from the beginning of the contract to maturity and guarantees payment of a specified sum to the insured,even if he or she is still living at the end of the contract period? A)Credit life insurance B)Endowment life insurance C)Industrial life insurance D)Group life insurance E)Universal life insurance

Which of the following attributes would not be used by an underwriter to determine the appropriate premiums to charge for insurance? A)Marital status B)Gender C)Health D)Age E)Occupation

The easy method of determining life insurance needs is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years? A)20 B)40 C)50 D)70 E)80

How many different types of life insurance companies are there? A)1 B)2 C)3 D)4 E)5

Term insurance is protection for a specified period of time,usually: A)1 year B)5 years C)10 years D)20 years E)Any of these intervals are offered

How frequently does the premium for a whole life policy change during the insured's life? A)Every year B)Every two years C)Every five years D)Every 10 years E)It never changes

Which type of life insurance is the least popular and its appeal continues to drop? A)Endowment life insurance B)Credit life insurance C)Group life insurance D)Industrial life insurance E)Universal life insurance

The premium for a whole life insurance policy remains constant: A)throughout your lifetime. B)during the first year of the policy. C)during the first five years of the policy. D)only through age 55. E)only through age 69.

When choosing life insurance,you should consider: A)the price of the policy. B)the financial stability of the insurance company. C)the reliability of the insurance company. D)the service that the insurance company provides. E)All of these

Which of the following life insurance policies has a cash value feature? A)Term life B)Group life C)Credit life D)Whole life E)Convertible term

Cash-value policies may make sense for people who: A)intend to keep the policies for only a couple of years. B)are able to save easily. C)must be forced to save. D)need to accumulate reserves in a few years. E)need benefits in the early years.

Using the Multiple of Income Method to estimate insurance needs,what amount of insurance is needed if your current income is $50,000? A)$50,000 B)$100,000-$200,000 C)$250,000-$500,000 D)$500,000-$900,000 E)over $1,000,000

Using the Multiple of Income Method to estimate life insurance needs,what is the minimum amount of insurance needed for Susan Smith if her annual income is $60,000? A)$60,000 B)$100,000 C)$150,000 D)$200,000 E)$300,000

Which of the following is a helpful website with an online calculator to estimate life insurance needs? A)www.lifehexists.com B)www.humanlifecalculator.com C)www.lifecalculator.com D)www.nerdwallet.com/life-insurance E)www.familyneeds.com

Which of the following is a popular app for estimating life insurance needs? A)www.Kiplinger.com/insurance B)Human Life Value Calculator C)money.msn.com D)Today E)www.familyneeds.com

Which type of life insurance policy continues to grow in popularity,because the policyholder pays the same premium amount for the life of the policy? A)Whole life B)Multiyear term life C)Decreasing term D)Return-of-premium term E)Convertible term

One of the ten golden rules when buying life insurance is to: A)buy from an unlicensed company. B)buy more life insurance than you need. C)select an agent who is competent and trustworthy. D)ask about higher premium rates for nonsmokers. E)not worry about reading and understanding your policy.

One of the ten golden rules when buying life insurance is to: A)buy from a company licensed in your state. B)buy more life insurance than you need. C)select an agent who is incompetent. D)ask about higher premium rates for nonsmokers. E)not worry about reading and understanding your policy.

Which one of the following is a price quote service that offers convenient and free,no-obligation life insurance premium comparisons? A)Term Quote B)Bargain Quote C)Life Quote D)Expensive Quote E)Best Value Quote

To obtain the insurance proceeds from a life insurance policy,who will have to send the policy and a copy of your death certificate to the life insurance company? A)Your doctor B)Your family friend C)Your beneficiary D)Your coworker E)Your funeral home

Which of the following life insurance policies offers the greatest amount of coverage for the lowest initial premium and is a good choice for young families on a tight budget? A)Whole life B)Straight life C)Ordinary life D)Cash value life E)Term life

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

What are the two basic types of life insurance? Give examples of each.

Define rider and describe three riders commonly attached to life insurance policies.

In creating a plan to buy your life insurance,what factors should you consider before buying? Also,describe from whom you should buy,including the sources.

When choosing an insurance agent,what are some important questions to ask?

Explain how a guaranteed insurability option works and why it is beneficial.