| 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. |
