FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Life Insurance

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

A document attached to the policy that modifies its coverage by adding or deleting a specified condition is called a(n) :

A) rider.
B) waiver of premium.
C) automatic premium loan.
D) beneficiary.
E) incontestability clause.

F) All of the above
G) None of the above

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

The cost-of-living protection rider is designed to help prevent inflation from eroding the purchasing power of the protection your policy provides.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

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

Fundamentally, group insurance is ____________ insurance.

When your life insurance objectives change, you should review the provisions in your policy before making any decisions regarding the policy.

Cash value policies may make sense for people who intend to keep the policies for only a couple of years.

Lisa Smith has her age listed on her driver's license as being three years younger than it actually is. This is also how old she tells her insurance company she is. Her insurance company has discovered she lied about her age. What provision of her life insurance contract states that her benefits will be what her premium would have bought if she had been truthful about her age?

Credit life insurance policies for auto loans and home mortgages are usually the best buys for the protection they offer.

Which one of the following statements correctly applies to term insurance?

Two basic types of life insurance are temporary and permanent insurance.

The easy method of determining life insurance is based on the rule of thumb that a "typical family" will need about what percent of a wage-earner's salary for seven years?

If life insurance proceeds are left with the company, the company acts as trustee and pays the interest to the beneficiary.

After you buy new life insurance you have a "free look" period of ______ days.

Your annual income is $50,000. What is your life insurance need based on the easy method?

Lori Simpson is thinking about purchasing some life insurance. She goes to a company where the policyholders are essentially the owners of the company. What type of life insurance company has she visited?

Term insurance continues for the entire term even if you stop paying the premiums.

The cash values of a variable life insurance policy increase at a constant rate over time.

According to a survey by Salary.com, the equivalent salary of a stay-at-home mom is approximately how much?

Consumer awareness of life insurance has changed little over the years.

Your annual income is $100,000. You have a spouse, two kids, a dog and a mortgage - a typical family. What is your life insurance need based on the easy method?