Pers Finance 12

Typical examples of uses of life insurance proceeds are All of the above are typical examples.
Which is a correct statement about life insurance? Life insurance is still more often sold than bought.
Life insurance premiums are determined basically by the use of mortality tables.
The 1980 CSO Table separates the mortality experience by sex.
What factors should you consider before you buy insurance? All of the above factors should be considered.
A two-earner couple may have a moderate need for life insurance, especially if they have a mortgage.
Your first step in determining a life insurance program should be to determine your life insurance objectives.
The easy method of determining life insurance requirements assumes that your family is typical
Which method of determining life insurance requirements is best suited for a working couple with no dependents? DINK method
A participating life insurance policy has somewhat higher premiums than nonparticipating policy.
Most participating policies are sold by mutual life insurance companies.
Which statement is correct regarding mutual insurance companies? A mutual company refunds part of the premium to the policyholders.
Which statement is correct regarding stock life insurance companies? A stock company generally sells nonparticipating (non par) policies.
Which type of insurance is sometimes called temporary insurance? term insurance
Which of the following statements is correct for term insurance? Term insurance is protection for a specified period of time.
The most common type of permanent life insurance is called the whole life policy.
Which statement is correct about whole life insurance? Whole life insurance builds up cash value.
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 long-term fund. variable
Which type of life insurance policy combines term insurance and investment elements? universal life
Some experts claim that credit life insurance policies are the nation’s biggest rip off.
A plan that insures a large number of persons under the terms of a single policy without a medical examination is called a(n) ____________ life insurance policy plan. group
A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n) rider.
In planning your insurance program, you should consider all of the above factors.
An authoritative rating guide to the financial stability of the nation’s insurers is published by all of the following except Dow Jones Company.
Among the most important steps in the process of building your insurance program is choosing a good insurance agent.
What percent of all applicants who apply for life insurance are found to be insurable? 98
The prices of life insurance policies vary considerably.
Perhaps the most common settlement options in a life insurance program are All are common options.
A financial contract written by an insurance company to provide you with a regular monthly income for as long as you live is called an annuity.
A contract stating that the annuitant will receive a fixed amount of income over a certain period or for life is called a fixed annuity.

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