Chapter 2 the need for insurance (quiz)

In terms of Social Security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receiving retirement benefits?

Blackout period

During which of the following income periods does the surviving spouse's working income ceases and Social Security benefits begin?

Retirement

What is the time period called during which the surviving spouse of the insured does not receive Social Security income benefits?

Blackout period

A family's income need is greatest during which of the following periods?

Family Income Dependency period

50-year-old Sue is married to 53-year-old Aaron, who is the primary breadwinner in the family. They have raised two children, who have recently left the house and are earning stable incomes. Sue and Aaron are in which of the following income periods?

Preretirement

Which of the following is the best reason to purchase life insurance rather than annuities?

To create an estate

Which of the following is an example of liquidity in a life insurance contract?

The cash value available to the policyowner

Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death?

life insurance proceeds

Which of the following is the period when, should the insured die prematurely, the surviving spouse will have dependent children to support?

Family dependency period

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation?

Human life value approach

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value?

Predicted needs of the family after the insured's death.

A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as

survivor protection

The surviving spouse receives Social Security benefits which of the following?

Retirement period

Which of the following would be considered value provided by life insurance?

It can be used as collateral to secure a loan.

Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life?

Need is predicted using the number of years until the insured's retirement.

Attempting to determine how much insurance an individual would require based upon their financial objectives is known as

Needs approach.

Which of the following is the income period after the children are no longer dependent upon the surviving spouse for support, but before the surviving spouse qualifies for Social Security survivor benefits?

Preretirement Period

Which of the following would NOT fall into the category of costs associated with death?

The expense of a vacation for surviving family members

Which of the following types of insurance policies would perform the function of cash accumulation?

whole life