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. |