Personal Finance Study Set 15

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.