Question 1

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a(n)  ____________ life insurance policy plan.

Accepted Answer

A)   individual
B)   whole
C)   large number
D)   permanent
E)   groupF) B) and C)
G) B) and D)

Question 2

Which of the following is (are)  false?

Accepted Answer

A)   Stock companies generally sell nonparticipating policies.
B)   A participating policy usually has a somewhat higher premium than a comparable nonparticipating policy.
C)   Mutual companies generally sell participating policies.
D)   You can expect to receive a policy dividend from a stock company.
E)   More than one of the listed answers are false.F) A) and E)
G) C) and E)

Question 3

It has been shown that there is a link between an individual's education level and their life expectancy.

Accepted Answer

A) True 
 B)False

Question 4

You probably have little or no need for life insurance if you are:

Accepted Answer

A)   a single person living alone or with parents.
B)   divorced and have two children.
C)   married and your spouse works.
D)   gainfully employed.
E)   a household with several children.F) A) and B)
G) B) and E)

Question 5

Most life insurance companies are mutuals.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

This option allows you to buy specified ...

Question 7

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

Accepted Answer

A)   Every year
B)   Every two years
C)   Every five years
D)   Every 10 years
E)   It never changesF) B) and C)
G) A) and B)

Question 8

What are the steps in creating a plan to buy your life insurance?

Accepted Answer

Before buying life insurance, you should...

Question 9

The cash values of a(an)  ____________ 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 long-term fund.

Accepted Answer

A)   modified
B)   variable
C)   adjustable
D)   ordinary
E)   temporaryF) A) and E)
G) B) and C)

Question 10

Nearly all mutual companies issue only nonparticipating policies.

Accepted Answer

A) True 
 B)False

Question 11

What should you consider before you buy life insurance?

Accepted Answer

A)   Your present and future sources of income
B)   Your savings
C)   Employer's group life insurance
D)   Pension benefits
E)   You should consider all of the factors listedF) A) and B)
G) B) and E)

Question 12

Which of the following refer to permanent insurance?

Accepted Answer

A)   Whole life
B)   Straight life
C)   Ordinary life
D)   Cash-value life
E)   All of these are types of permanent insurance.F) A) and D)
G) C) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The second-to-die option is paid when the first spouse dies.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which type of life insurance is the least popular today?

Accepted Answer

A)   Endowment life insurance
B)   Credit life insurance
C)   Group life insurance
D)   Industrial life insurance
E)   Universal life insuranceF) C) and D)
G) A) and E)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

One important feature of a whole life policy is the nonforfeiture clause.

Accepted Answer

A) True 
 B)False

Exam 12: Life Insurance

Most life insurance companies are mutuals.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The second-to-die option is paid when the first spouse dies.

Correct AnswerverifiedShow Answer

Which type of life insurance is the least popular today?

Correct AnswerverifiedShow Answer

The cash values of a(an) ____________ 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 long-term fund.

Correct AnswerverifiedShow Answer

What are the steps in creating a plan to buy your life insurance?

Correct AnswerverifiedBefore buying life insurance, you should...View AnswerShow Answer

You probably have little or no need for life insurance if you are:

Correct AnswerverifiedShow Answer

Which of the following is (are) false?

Correct AnswerverifiedShow Answer

Which of the following refer to permanent insurance?

Correct AnswerverifiedShow Answer

One important feature of a whole life policy is the nonforfeiture clause.

Correct AnswerverifiedShow Answer

A plan that insures a large number of persons under the terms of a single policy without requiring medical examinations is called a(n) ____________ life insurance policy plan.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThis option allows you to buy specified ...View AnswerShow Answer

What should you consider before you buy life insurance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

It has been shown that there is a link between an individual's education level and their life expectancy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Nearly all mutual companies issue only nonparticipating policies.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Before buying life insurance, you should...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This option allows you to buy specified ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified