Question 1

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter. This alteration has most likely been done by attaching a(n)  ____ to the policy.

Accepted Answer

A)   accelerated benefits clause
B)   policy dividend
C)   guaranteed insurability clause
D)   second-to-die rider
E)   double indemnity riderF) All of the above
G) A) and B)

Question 2

In planning your insurance program, you should:

Accepted Answer

A)   seek advice from a competent financial adviser.
B)   determine what insurance is required.
C)   consider Social Security and other group insurance.
D)   decide what type of insurance best meets your needs.
E)   consider all of the factors listed in the other answers.F) A) and D)
G) A) and C)

Question 3

Term insurance is a basic, "no frills" form of life insurance and is the best value for most customers.

Accepted Answer

A) True 
 B)False

Question 4

When buying life insurance, as a rule, you should deal with companies rated superior or excellent by the big rating agencies.

Accepted Answer

A) True 
 B)False

Question 5

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Accepted Answer

A) True 
 B)False

Question 6

A beneficiary is a person designated to receive something such as life insurance proceeds, from the insured.

Accepted Answer

A) True 
 B)False

Question 7

John Camey has a life insurance policy that is tied to a separate stock fund. The cash value of his insurance policy depends on the value of this fund. He is guaranteed a minimum death benefit but the death benefit can be higher, depending on the value of the fund. What type of life insurance does John likely have?

Accepted Answer

A)   Ordinary whole life
B)   Limited payment life
C)   Variable life
D)   Adjustable life
E)   Universal lifeF) A) and C)
G) A) and E)

Exam 12: Life Insurance

A beneficiary is a person designated to receive something such as life insurance proceeds, from the insured.

Correct Answer
verified

Term insurance is a basic, "no frills" form of life insurance and is the best value for most customers.

Correct Answer
verified

When buying life insurance, as a rule, you should deal with companies rated superior or excellent by the big rating agencies.

Correct Answer
verified

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Correct Answer
verified

Correct Answer
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In planning your insurance program, you should:

Correct Answer
verified

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter. This alteration has most likely been done by attaching a(n) ____ to the policy.

Correct Answer
verified

Exam 12: Life Insurance

A beneficiary is a person designated to receive something such as life insurance proceeds, from the insured.

Correct AnswerverifiedShow Answer

Term insurance is a basic, "no frills" form of life insurance and is the best value for most customers.

Correct AnswerverifiedShow Answer

When buying life insurance, as a rule, you should deal with companies rated superior or excellent by the big rating agencies.

Correct AnswerverifiedShow Answer

The policy loan provision permits you to borrow any amount up to the cash value of the policy.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In planning your insurance program, you should:

Correct AnswerverifiedShow Answer

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter. This alteration has most likely been done by attaching a(n) ____ to the policy.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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