Personally Finance Chapter 12 Quiz

What percent of all applicants who apply for life insurance are found to be insurable?A) 58B) 68C) 78D) 88E) 98 E) 98
Your first step in determining a life insurance program should be to:A) Consult a local insurance company agentB) Buy as much life insurance as you can affordC) Estimate your life insurance requirementsD) Determine your life insurance objectivesE) Evaluate the ratings of the insurance company D) Determine your life insurance objectives
The life expectancy of a female at the age of 30 is 47.65 years. It means that:A) A 30-year-old female has the highest probability of dyingB) A 30-year-old female has the highes probabailty of livinfC) Females alive at 30 years of age have an average number of 47.65 years still left to liveD) 47.65 is the average age at which all females, age 30, will dieE) Very few 30-year-old females will live past the age of 77 C) Females alive at 30 years of age have an average number of 47.65 years still left to live
Which method of determining life insurance requirements is designed specifically for a working couple with no dependents?A) Hard methodB) Easy methodC) Nonworking spouse methodD) Through methodE) DINK method E) DINK method
The most common type of permanent life insurance is called: A) Whole lifeB) Term lifeC) Universal lifeD) Modified lifeE) Variable life A) Whole life
Catherine Carey has made the choice to stay home and raise her three kids while her husband works. She wants to determine her insurance need. What method was specifically designed for someone in her situation?A) Easy methodB) DINK methodC) Nonworking spouse methodD) Family need methodE) Soccer mom method C) Nonworking spouse method
A two-earner couple likely will have:A) The greatest need for life insuranceB) No need for life insuranceC) A moderate need for life insurance, especially if they have a mortgageD) The greatest need for annuityE) The exact same life insurance needs as all other two-earner couples C) A moderate need for life insurance, especially if they have a mortgage
Individuals and families purchase life insurance primarily to:A) Pay liability claims resulting from accidentsB) Fill financial needs created by the loss of the breadwinnerC) Fund lavish retirement vacationsD) Keep up with people with a similar financial situationE) Make early retirement possible B) Fill financial needs created by the loss of the breadwinner
Which statement is correct about whole life insurance?A) It is cheaper than term lifeB) It builds up cash valueC) The premiums increase with your ageD) It is the best choice for most peopleE)It is the same thing as term life insurance B) It builds up cash value

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