XCEL Chapter 11: Uses of Life Insurance

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called? A) Estate conservation B) Liquidity maintenance C) Survivor fund D) Human value protection

A) Estate conservation

Bob and Tom are partners in a business. If one of them were to die, which of the following would guarantee a market for each of their share of the business? A) Split Dollar plan B) Buy-Sell agreement C) Deferred compensation plan D) Key person insurance

B) Buy-Sell agreement

Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death? A) Financial loss value B) Human life value C) Assessment value D) Replacement value

B) Human life value

Buy-sell agreements are typically funded by which two insurance products? A) Decreasing term insurance and Workers' Compensation B) Life insurance and disability insurance C) Endowments and Medicare D) AD&D and Social Security

B) Life insurance and disability insurance

When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? A) The income earner's future projected income B) The family's financial objectives if the income earner were to die or become disabled C) The insurance company's financial rating D) The income earner's credit score

B) The family's financial objectives if the income earner were to die or become disabled

Which of these factors is NOT taken into account when determining an applicant's life insurance needs? A) Social Security B) automobile C) savings D) pension

B) automobile

The Human Life Value concept is based on A) education level B) age C) income D) occupation

C) income

"Life insurance creates an immediate estate". This phrase means: A) cash value has accumulated in the policy B) the insured's estate receives the death benefit C) when the insured dies, a death benefit is paid D) premiums are payable by the insured's estate

C) when the insured dies, a death benefit is paid

Which of the following pieces of information is NOT gathered during the personal financial planning process? A) An individual's assets B) An individual's expenses C) An individual's income D) An individual's civic organization memberships

D) An individual's civic organization memberships

All of the following are examples of a Business Continuation Plan EXCEPT A) Key person insurance B) Cross-purchase agreement C) Stock Redemption Plan D) Deferred Compensation

D) Deferred Compensation

All of these are common personal uses of life insurance EXCEPT A) Pay final expenses B) Fund a child's education C) Replace an insured's income D) Fund a Buy-Sell agreement

D) Fund a Buy-Sell agreement

Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? A) Future value approach B) Earnings approach C) Needs approach D) Human life value approach

D) Human life value approach

All of the following are considered appropriate uses of life insurance for business purposes EXCEPT A) Attracting quality employees by offering a group life plan B) Funding an entity buy-sell agreement C) Protecting the business by covering key employees with life insurance D) Protecting the business by covering entry level employees with life insurance

D) Protecting the business by covering entry level employees with life insurance

Key person insurance is intended to A) allow a key person to purchase the business B) help retain key employees by offering added benefits C) give premium-grade benefits to key employees D) cover business losses due to the death of a key employee

D) cover business losses due to the death of a key employee


Set pelajaran terkait

MODULE 7 HEENT, Neurological Assessment, Cognitive and Sensory Deficits

View Set

Adolescent psychology Final Exam

View Set

Network+ Guide to Networks 7th Edition Chapter 2 - Review Questions

View Set

N 3320: Test #3 Exam Review, N3320: Test #2 Review, N3320 Test #1 Review

View Set

Chapter 34: Caring for Clients with Immune-Mediated Disorders

View Set