Question 1

Generally, disability income policies with longer waiting periods

Accepted Answer

A)   have higher premiums.
B)   have lower premiums.
C)   have about the same premium.
D)   Are issued by smaller insurance companies.
E)   Are issued by larger insurance companies.F) A) and D)
G) All of the above

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Disability can cause even greater financial problems than death.

Accepted Answer

A) True 
 B)False

Question 4

Disability income insurance is probably the most coveted form of available insurance protection.

Accepted Answer

A) True 
 B)False

Question 5

With a lump-sum payment, the insurance company pays the face amount of the policy in one installment to the beneficiary or to the estate of the insured.

Accepted Answer

A) True 
 B)False

Question 6

The "free-look" period allows you to cancel your life insurance without penalty anytime within 10 days.

Accepted Answer

A) True 
 B)False

Question 7

If you wanted to pay exactly the same life insurance premium each year, you would choose a

Accepted Answer

A)   variable life policy.
B)   participating policy.
C)   term insurance policy.
D)   nonparticipating policy.
E)   endowment policy.F) C) and E)
G) All of the above

Question 8

In planning your insurance program, you should

Accepted Answer

A)   seek advice from a competent financial adviser.
B)   determine what insurance is required.
C)   consider social security and other group insurance.
D)   decide what type of insurance best meets your needs.
E)   seek advice from a competent financial adviser, determine what insurance is required, consider social security and other group insurance, and decide what type of insurance best meets your needs.F) C) and D)
G) D) and E)

Question 9

Canadians are amongst the most life-insured people in the world.

Accepted Answer

A) True 
 B)False

Question 10

Canadian consumers are generally unaware that long-term care insurance even exists.

Accepted Answer

A) True 
 B)False

Question 11

A particular insurance company will not be equally competitive for all policies. One company might have a competitively priced policy for 24-year-olds but not for 35-year-olds.

Accepted Answer

A) True 
 B)False

Question 12

Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

Accepted Answer

A)   group health
B)   individual health
C)   hospital expense
D)   surgical expense
E)   physician's expenseF) B) and C)
G) A) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an important trade off in purchasing disability income insurance?

Accepted Answer

A)   waiting period
B)   amount of down-payment
C)   duration of benefit.
D)   accident and sickness coverage.
E)   guaranteed renewability.F) A) and B)
G) A) and E)

Question 15

Generally, disability income policies with shorter waiting periods have lower premiums.

Accepted Answer

A) True 
 B)False

Question 16

Group health insurance will cover you but not your immediate family.

Accepted Answer

A) True 
 B)False

Question 17

Even though it is expensive, you should consider the accidental death benefit in a life insurance policy.

Accepted Answer

A) True 
 B)False

Question 18

Critical insurance illness is gaining recognition in Canada as a valuable insurance tool.

Accepted Answer

A) True 
 B)False

Question 19

The premium for non-cancelable and guaranteed renewable disability income insurance is higher,

Accepted Answer

A)   therefore, younger people should skip these coverages.
B)   hence, the insurance companies enjoy better profit margins.
C)   therefore, very few older workers should carry these coverages.
D)   but the coverages are well worth the extra cost
E)   hence, the policy pays benefits for life.F) A) and B)
G) A) and E)

Question 20

Which of the following statements is true of long-term-care insurance?

Accepted Answer

A)   Canadians are generally unaware of its existence.
B)   It covers you when you have a disability that leaves you unable to take care of yourself.
C)   It covers you when you have a disability and may need help at home with daily activities.
D)   Canadians are generally unaware of its existence and it covers you when you have a disability that leaves you unable to take care of yourself.
E)   Canadians are generally unaware of its existence; it covers you when you have a disability that leaves you unable to take care of yourself; and it covers you when you have a disability and may need help at home with daily activities.F) All of the above
G) A) and E)

Exam 9: Life, Health, and Disability Insurance

Canadians are amongst the most life-insured people in the world.

Correct AnswerverifiedShow Answer

A particular insurance company will not be equally competitive for all policies. One company might have a competitively priced policy for 24-year-olds but not for 35-year-olds.

Correct AnswerverifiedShow Answer

The "free-look" period allows you to cancel your life insurance without penalty anytime within 10 days.

Correct AnswerverifiedShow Answer

Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

Correct AnswerverifiedShow Answer

Which of the following statements is true of long-term-care insurance?

Correct AnswerverifiedShow Answer

With a lump-sum payment, the insurance company pays the face amount of the policy in one installment to the beneficiary or to the estate of the insured.

Correct AnswerverifiedShow Answer

Group health insurance will cover you but not your immediate family.

Correct AnswerverifiedShow Answer

Generally, disability income policies with longer waiting periods

Correct AnswerverifiedShow Answer

Canadian consumers are generally unaware that long-term care insurance even exists.

Correct AnswerverifiedShow Answer

Which of the following is not an important trade off in purchasing disability income insurance?

Correct AnswerverifiedShow Answer

Disability can cause even greater financial problems than death.

Correct AnswerverifiedShow Answer

Even though it is expensive, you should consider the accidental death benefit in a life insurance policy.

Correct AnswerverifiedShow Answer

Critical insurance illness is gaining recognition in Canada as a valuable insurance tool.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In planning your insurance program, you should

Correct AnswerverifiedShow Answer

The premium for non-cancelable and guaranteed renewable disability income insurance is higher,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Disability income insurance is probably the most coveted form of available insurance protection.

Correct AnswerverifiedShow Answer

Generally, disability income policies with shorter waiting periods have lower premiums.

Correct AnswerverifiedShow Answer

If you wanted to pay exactly the same life insurance premium each year, you would choose a

Correct AnswerverifiedShow Answer

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