Question 1

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

Accepted Answer

A) True 
 B)False

Question 2

Tim Bridges has a life insurance policy where he makes payments of $265 per year until he reaches the age of 65.His policy is then 'paid up' for life.His beneficiaries will receive the face value upon his death.What type of life insurance does Tim likely have?

Accepted Answer

A)  ordinary whole life
B)  limited payment life
C)  variable life
D)  adjustable life
E)  universal life

Question 3

Term insurance is a basic,"no frills" form of life insurance and is the best value for most customers.

Accepted Answer

A) True 
 B)False

Question 4

The first step in buying insurance is to determine whether you really need life insurance.

Accepted Answer

A) True 
 B)False

Question 5

Which statement is correct regarding stock life insurance companies?

Accepted Answer

A)  A stock company sells participating policies.
B)  A stock company always charges higher premiums than mutual companies.
C)  A policyholder participates in the profit or loss of the company.
D)  A stock company generally sells nonparticipating (non par) policies.
E)  A stock company is owned by policyholders.

Question 6

Which of the following questions are important to consider when choosing an insurance agent?

Accepted Answer

A)  Is your agent available when needed?
B)  Does your agent advise you to have a financial plan?
C)  Is your agent happy to answer questions?
D)  Does your agent keep up with changes in the insurance field?
E)  Consider all the questions in the other answers.

Question 7

Most American families face substantial loss when one spouse dies unexpectedly.

Accepted Answer

A) True 
 B)False

Question 8

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

Accepted Answer

A) True 
 B)False

Question 9

How much insurance one should carry is an important question for anyone who owns or intends to buy life insurance.

Accepted Answer

A) True 
 B)False

Question 10

An annuity is often described as being:

Accepted Answer

A)  the same as a whole life insurance.
B)  term life insurance.
C)  limited life insurance.
D)  disability income insurance.
E)  the opposite of life insurancE.

Question 11

Scott Cumbie believes he has a 'typical' family and wants to determine his life insurance need.What method would probably be the fastest method for him to use to calculate his insurance need?

Accepted Answer

A)  easy method
B)  DINK method
C)  nonworking spouse method
D)  'family need' method
E)  sample method

Question 12

What do the terms "term","decreasing" or "declining term",and "whole life" mean with respect to life insurance?

Accepted Answer

Term or level term provides a fixed amount of coverage for a specific period of time.Declining term provides coverage that decreases in amount over a specified period of time.Whole life provides a fixed amount of coverage for the life of the insured.In essence it combines declining term with a forced saving feature.Neither level term nor declining term has a savings feature and are thus less expensive than whole life.

Question 13

Which of the following statements is true about group life insurance?

Accepted Answer

A)  Group life has been losing its popularity recently.
B)  The cost of insurance per $1,000 is the same for each employee.
C)  Group insurance is not a good bargain for older employees.
D)  Principles that apply to other forms of insurance do not apply to group life insurance.
E)  Group life is basically the same thing as term life insurancE.

Question 14

What is an annuity? What is the difference between life insurance and an annuity? Include payment options and tax considerations.

Accepted Answer

An annuity is a financial contract writt...

Question 15

Most participating policies are sold by:

Accepted Answer

A)  federal government agencies.
B)  state insurance commissioners.
C)  mutual life insurance companies.
D)  stock life insurance companies.
E)  investment banks.

Question 16

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Accepted Answer

A) True 
 B)False  False

Question 17

Your annual income is $35,000.What is your life insurance need based on the easy method?

Accepted Answer

A)  $35,000
B)  $110,500
C)  $171,500
D)  $191,500
E)  over $200,000

Question 18

One important feature of a whole life policy is the nonforfeiture clause.

Accepted Answer

A) True 
 B)False

Question 19

Stock life insurance companies are owned by their policyholders.

Accepted Answer

A) True 
 B)False

Question 20

The DINK method assumes that:

Accepted Answer

A)  you have only two children.
B)  your spouse does not work.
C)  your insurance needs are complex.
D)  your spouse will continue to work after your death.
E)  your spouse is in an occupation with an uncertain futurE. D

Exam 12: Life Insurance

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

Correct Answer
verified

Tim Bridges has a life insurance policy where he makes payments of $265 per year until he reaches the age of 65.His policy is then 'paid up' for life.His beneficiaries will receive the face value upon his death.What type of life insurance does Tim likely have?

Correct Answer
verified

Term insurance is a basic,"no frills" form of life insurance and is the best value for most customers.

Correct Answer
verified

The first step in buying insurance is to determine whether you really need life insurance.

Correct Answer
verified

Which statement is correct regarding stock life insurance companies?

Correct Answer
verified

Which of the following questions are important to consider when choosing an insurance agent?

Correct Answer
verified

Most American families face substantial loss when one spouse dies unexpectedly.

Correct Answer
verified

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

Correct Answer
verified

How much insurance one should carry is an important question for anyone who owns or intends to buy life insurance.

Correct Answer
verified

An annuity is often described as being:

Correct Answer
verified

Scott Cumbie believes he has a 'typical' family and wants to determine his life insurance need.What method would probably be the fastest method for him to use to calculate his insurance need?

Correct Answer
verified

What do the terms "term","decreasing" or "declining term",and "whole life" mean with respect to life insurance?

Which of the following statements is true about group life insurance?

Correct Answer
verified

What is an annuity? What is the difference between life insurance and an annuity? Include payment options and tax considerations.

Correct Answer
verified
An annuity is a financial contract writt...
View Answer

Most participating policies are sold by:

Correct Answer
verified

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Correct Answer
verified
False

Your annual income is $35,000.What is your life insurance need based on the easy method?

Correct Answer
verified

One important feature of a whole life policy is the nonforfeiture clause.

Correct Answer
verified

Stock life insurance companies are owned by their policyholders.

Correct Answer
verified

The DINK method assumes that:

Correct Answer
verified
D

Exam 12: Life Insurance

Under the waiver of premium disability benefit provision,the company waives any premiums that are due after the onset of total and permanent disability.

Correct AnswerverifiedShow Answer

Tim Bridges has a life insurance policy where he makes payments of $265 per year until he reaches the age of 65.His policy is then 'paid up' for life.His beneficiaries will receive the face value upon his death.What type of life insurance does Tim likely have?

Correct AnswerverifiedShow Answer

Term insurance is a basic,"no frills" form of life insurance and is the best value for most customers.

Correct AnswerverifiedShow Answer

The first step in buying insurance is to determine whether you really need life insurance.

Correct AnswerverifiedShow Answer

Which statement is correct regarding stock life insurance companies?

Correct AnswerverifiedShow Answer

Which of the following questions are important to consider when choosing an insurance agent?

Correct AnswerverifiedShow Answer

Most American families face substantial loss when one spouse dies unexpectedly.

Correct AnswerverifiedShow Answer

The financial strength of an insurance company may be a major factor in holding down premium costs for consumers.

Correct AnswerverifiedShow Answer

How much insurance one should carry is an important question for anyone who owns or intends to buy life insurance.

Correct AnswerverifiedShow Answer

An annuity is often described as being:

Correct AnswerverifiedShow Answer

Scott Cumbie believes he has a 'typical' family and wants to determine his life insurance need.What method would probably be the fastest method for him to use to calculate his insurance need?

Correct AnswerverifiedShow Answer

What do the terms "term","decreasing" or "declining term",and "whole life" mean with respect to life insurance?

Which of the following statements is true about group life insurance?

Correct AnswerverifiedShow Answer

What is an annuity? What is the difference between life insurance and an annuity? Include payment options and tax considerations.

Correct AnswerverifiedAn annuity is a financial contract writt...View AnswerShow Answer

Most participating policies are sold by:

Correct AnswerverifiedShow Answer

Usually,there is no time limit on reinstatement of a lapsed life insurance policy.

Correct AnswerverifiedFalse

Your annual income is $35,000.What is your life insurance need based on the easy method?

Correct AnswerverifiedShow Answer

One important feature of a whole life policy is the nonforfeiture clause.

Correct AnswerverifiedShow Answer

Stock life insurance companies are owned by their policyholders.

Correct AnswerverifiedShow Answer

The DINK method assumes that:

Correct AnswerverifiedD

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An annuity is a financial contract writt...
View Answer

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D