Module 11 Quiz
After you purchase a life insurance contract, you have a "free look" period that lasts
10 days
Donald and Charlene are married and do not have any children. They plan to ensure that the other will not be unduly burdened by debts in case one of them dies. Each plans to continue to work after the other one dies. Which method are they using to determine their life insurance needs?
DINK
What is the most important part of an insurance agent's job?
Help you select the proper kind of protection within your financial boundaries.
Most people buy life insurance to
Protect the people who depend on the insured from financial losses caused by his or her death.
A person who is named to receive the proceeds from a life insurance policy is a(n)
beneficiary
Judy and James have a 4-year-old child. They plan to purchase life insurance using this formula: Current income × 7 × 70%. Which method are they using to determine their life insurance needs?
easy method
Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. They will consider factors such as Social Security and liquid assets. Which method are they using to determine their life insurance needs?
family need method
Which of the following households most likely has the greatest need for life insurance?
household with children
The settlement option that pays the life insurance proceeds to the beneficiary for as long as she or he lives is called
limited installment payment
Fred bought life insurance when he was 47, although he told the insurance company that he was 42. He has since died. Which of the following provisions will affect the amount of money his beneficiaries will receive?
misstatement of age provision
This term life insurance policy will guarantee that you will pay the same premium for the duration of your policy.
multilevel year term
Another name for a straight term policy is
multiyear level term
Wendy has had a life insurance policy for five years with her spouse listed as the person who receives the benefit if she dies. She was recently divorced. Which of the following provisions should she take action on?
naming a beneficiary
Jeff and Erica have two children. They plan to purchase life insurance using this formula: (18 minus Youngest child's age) × $10,000. Which method are they using to determine their life insurance needs?
nonworking spouse method
If you have a multiyear level term policy,
your premium will be the same the whole time
