FIN 3310 Ch. 11
flexible premium payments.
All of the following are characteristics of variable life insurance EXCEPT
term life insurance.
All of the following life insurance policies develop a cash value EXCEPT
sandwiched family.
Bob and Tonya are supporting their children, ages 4 and 2. Bob's father is also financially dependent upon Bob and Tonya. This type of family is called a(n)
with outstanding financial obligations.
From an economic perspective, "premature death" is defined as death of a family head
limited-payment whole life insurance
Lynn, age 32, would like to purchase permanent life insurance. She is concerned that premiums may become a burden after she retires. Given her coverage preferences, which of the following life insurance policies is the best policy for Lynn to purchase?
current assumption whole life.
One type of life insurance is a nonparticipating whole life policy in which cash values are based on the insurer's present mortality, investment, and expense experience. An accumulation account is used to reflect the cash value of the policy, and a fixed death benefit and maximum premium level are stated at the time the policy is issued. This type of life insurance is called
convertible
Some term insurance policies permit the policyholder to exchange the policy for a cash value policy without having to demonstrate insurability. Such term insurance policies are described as
readjustment period.
Under the needs approach of determining the amount of life insurance to purchase, one consideration is providing income to the surviving spouse and children during the one- or two-year period following the breadwinner's death. This period is called the
neither I nor II
Which of the following statements is (are) true with respect to the human life value approach? The human life value approach considers all sources of income that the family receives. The human life value approach does not consider the time value of money-future cash flows are not discounted back to present value.
I only
Which of the following statements is (are) true with respect to universal life insurance? Universal life insurance provides premium payment flexibility for the policyholder. Universal life insurance permits the policyholder to select where the cash value is invested.