Question 1

You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

Accepted Answer

A) True 
 B)False

Question 2

The price of life insurance policies varies very little among life insurance companies.

Accepted Answer

A) True 
 B)False

Question 3

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Accepted Answer

A) True 
 B)False

Question 4

You wish to build up a cash surrender value within your life insurance policy.Which of the following types of life insurance would permit you to do so? I.Whole Life Insurance
II) Term-to-100 Insurance
III) Universal Life Insurance
IV) Declining Term Insurance

Accepted Answer

A)  I and III only
B)  I, II and III only
C)  IV only
D)  I, III and IV only
E)  I and II onlyF) B) and D)
G) A) and B)

Question 5

Of all life insurance applicants, 98 percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition.

Accepted Answer

A) True 
 B)False  True

Question 6

Life insurance is one of the few ways to provide liquidity at the time of death.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is correct for term insurance?

Accepted Answer

A)  Premiums for term insurance remain constant.
B)  Term insurance is protection for a specified period of time.
C)  Term insurance has cash value.
D)  Term insurance is usually more expensive than whole life insurance.
E)  Not available in a form that pays less to the beneficiaries as time passes.F) A) and B)
G) C) and D)

Question 8

A deductible is the amount the policyholder must pay before the policy benefits begin.

Accepted Answer

A) True 
 B)False  True

Question 9

A beneficiary

Accepted Answer

A)  acts as a trustee of your insurance policy.
B)  is a guardian of your children.
C)  acts on your behalf after you die.
D)  is designated to receive life insurance proceeds.
E)  takes your money and runs.F) B) and C)
G) A) and E)

Question 10

Which type of health insurance policy may not cover all of your health insurance needs or may deny benefits if you lose your job?

Accepted Answer

A)  group health
B)  individual health
C)  Basic health
D)  Comprehensive medical
E)  Disability incomeF) D) and E)
G) A) and E)

Question 11

The price of life insurance policies varies considerably among life insurance companies.

Accepted Answer

A) True 
 B)False

Question 12

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Accepted Answer

A) True 
 B)False

Question 13

You probably have little or no need for life insurance if you are

Accepted Answer

A)  married and your spouse works.
B)  divorced and have two children.
C)  a single person living alone or with parents.
D)  gainfully employed.
E)  a household with several children.F) C) and D)
G) B) and D)

Question 14

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Accepted Answer

A) True 
 B)False

Question 15

Double indemnity is when the insurance company pays twice the face value of the policy if the insured's death results from an accident.

Accepted Answer

A) True 
 B)False

Question 16

You should seek a disability policy that pays benefits for life.

Accepted Answer

A) True 
 B)False

Question 17

Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job.

Accepted Answer

A) True 
 B)False

Question 18

The fact is that for all age groups disability is more likely than death.

Accepted Answer

A) True 
 B)False

Question 19

Very few employers provide disability income protection for their employees through the group insurance plans.

Accepted Answer

A) True 
 B)False

Question 20

A particular insurance company will not be equally competitive for all policies.One company might have a competitively priced policy for 24-year-olds but not for 35-year-olds.

Accepted Answer

A) True 
 B)False  True

Exam 9: Life, Health, and Disability Insurance

You should aim for a disability benefit amount that when added to your other income will equal about 90 percent of your gross pay.

Correct AnswerverifiedShow Answer

The price of life insurance policies varies very little among life insurance companies.

Correct AnswerverifiedShow Answer

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Correct AnswerverifiedShow Answer

You wish to build up a cash surrender value within your life insurance policy.Which of the following types of life insurance would permit you to do so? I.Whole Life Insurance II) Term-to-100 Insurance III) Universal Life Insurance IV) Declining Term Insurance

Correct AnswerverifiedShow Answer

Of all life insurance applicants, 98 percent are found to be insurable, though some may have to pay higher premiums because of an existing medical condition.

Correct AnswerverifiedTrue

Life insurance is one of the few ways to provide liquidity at the time of death.

Correct AnswerverifiedShow Answer

Which of the following statements is correct for term insurance?

Correct AnswerverifiedShow Answer

A deductible is the amount the policyholder must pay before the policy benefits begin.

Correct AnswerverifiedTrue

A beneficiary

Correct AnswerverifiedShow Answer

Which type of health insurance policy may not cover all of your health insurance needs or may deny benefits if you lose your job?

Correct AnswerverifiedShow Answer

The price of life insurance policies varies considerably among life insurance companies.

Correct AnswerverifiedShow Answer

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Correct AnswerverifiedShow Answer

You probably have little or no need for life insurance if you are

Correct AnswerverifiedShow Answer

A rider is any document attached to the policy that modifies its coverage by adding or excluding specified conditions or altering its benefits.

Correct AnswerverifiedShow Answer

Double indemnity is when the insurance company pays twice the face value of the policy if the insured's death results from an accident.

Correct AnswerverifiedShow Answer

You should seek a disability policy that pays benefits for life.

Correct AnswerverifiedShow Answer

Good disability plans pay when you are unable to work at your regular job; poor disability plans pay only when you are unable to work at any job.

Correct AnswerverifiedShow Answer

The fact is that for all age groups disability is more likely than death.

Correct AnswerverifiedShow Answer

Very few employers provide disability income protection for their employees through the group insurance plans.

Correct AnswerverifiedShow Answer

A particular insurance company will not be equally competitive for all policies.One company might have a competitively priced policy for 24-year-olds but not for 35-year-olds.

Correct AnswerverifiedTrue

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