 |
| 1 | |
The method for calculating your insurance needs when you have no dependents and a working spouse and helps to ensure your spouse does not get unduly burdened by debts if you should die is known as: |
| | A) | The easy method. |
| | B) | The DINK method. |
| | C) | The 'nonworking' spouse method. |
| | D) | The 'family need' method. |
| | E) | None of the above. |
|
|
|
| 2 | |
Randy Keller earns about $45,000 per year and is married. He has a mortgage of $100,000, a car loan of $15,000 and a credit card balance totaling $4000. He has estimated it will cost about $5000 for his funeral. Use the easy method for determining his insurance needs. |
| | A) | $220,500 |
| | B) | $64,500 |
| | C) | $325,000 |
| | D) | $80,000 |
| | E) | None of the above |
|
|
|
| 3 | |
Randy Keller earns about $45,000 per year and is married. His spouse works and earns about the same as he does. He has a mortgage of $100,000, a car loan of $15,000 and a credit card balance totaling $4000. He has estimated it will cost about $5000 for his funeral. Use the DINK method for determining his insurance needs. |
| | A) | $220,500 |
| | B) | $64,500 |
| | C) | $325,000 |
| | D) | $80,000 |
| | E) | None of the above |
|
|
|
| 4 | |
The coverage of term insurance ends at the conclusion of the term, but it can be continued for another term if it has: |
| | A) | A renewability option. |
| | B) | A conversion option. |
| | C) | A multiyear level term. |
| | D) | Decreasing term insurance. |
| | E) | None of the above. |
|
|
|
| 5 | |
A whole life policy whose cash value fluctuates according to the yields earned on a separate fund is called: |
| | A) | A whole life policy. |
| | B) | A limited payment policy. |
| | C) | A variable life insurance policy. |
| | D) | An adjustable life insurance policy. |
| | E) | None of the above. |
|
|
|
| 6 | |
You forget to pay your premium this month. You insurance company automatically deducts the premium from the cash value of your policy. What provision of your life insurance policy allows this to happen? |
| | A) | The grace period portion of your insurance policy |
| | B) | The automatic premium loans portion of your insurance policy |
| | C) | The misstatement of age portion of your insurance policy |
| | D) | The naming of your beneficiary portion of your insurance policy |
| | E) | None of the above |
|
|
|
| 7 | |
You have had your whole life insurance policy for five years. The cash value of the policy is $15,000. You decide to borrow $5000 from your insurance company. Your ability to do this is outlined in which provision of your insurance policy? |
| | A) | The policy loan provision |
| | B) | The guaranteed insurability option |
| | C) | The cost of living protection provision |
| | D) | The accidental death benefit provision |
| | E) | None of the above |
|
|
|
| 8 | |
You have purchased an insurance policy and have named your 10 year old son as the beneficiary. You do not feel that it would be in your son's best interests to receive the money too soon. You decide to allow the insurance company to manage the money and pay your son the interest on the benefits in the event of your death. What payment option have you selected? |
| | A) | Lump sum payment option |
| | B) | Limited installment payment option |
| | C) | Life income option |
| | D) | Proceeds left with the company option |
| | E) | None of the above |
|
|
|
| 9 | |
_______________ is a life insurance policy that provides protection for a specified period of time. This policy only pays a benefit if you die in the period it covers and has no cash value. |
| | A) | Term insurance policy |
| | B) | Whole life insurance policy |
| | C) | Limited payment policy |
| | D) | Universal life insurance policy |
| | E) | None of the above |
|
|
|
| 10 | |
_______________ is a benefit under which the insurance company pays twice the face value of the policy if the insured's death result from an accident. |
| | A) | Suicide clause |
| | B) | Double indemnity |
| | C) | Nonforfeiture clause |
| | D) | Incontestability clause |
| | E) | None of the above |
|
|
.