Life Insurance Basics 08/20

Which of the following is NOT a type of information that needs to be gathered in order to determine the value of someone's life when using the needs approach? A Estimated longevity B Outstanding debt C Mortgages D Expenses

A Estimated longevity

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n) A Executive bonus. B Key person policy. C Fraternal association. D Aleatory contract.

A Executive bonus.

An applicant wants to buy a policy that has a cash value element. Which type should she buy? A Permanent B Stock C Investment D Term

A Permanent

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement? A Term insurance only B Permanent insurance only C Universal life insurance only D Any form of life insurance

D Any form of life insurance

An insured has a life insurance policy with a face amount of $500. He pays a premium each week to the agent who sold him the policy. What kind of policy does the insured have? A Credit life B Ordinary life C Franchise life D Industrial life

D Industrial life

In a life settlement contract, whom does the life settlement broker represent? A The insurer B The beneficiary C The life settlement intermediary D The owner

D The owner