Life Insurance Basics

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21 Questions ?I ?No Attempts Yet ?I ?Created By cshawnpujol 2 hours 11 mins ago

Question Excerpt From Life Insurance Basics

Q.1)?	Which Person Use of Life Insurance is NOT correctly matched wit the explanation

A.	Estate Conversion-- important for young families that have not yet had time to accumulate assets.

B.	Survivor Protection- Survivors maintain their lifestyle in the event of death.

C.	Cash Accumulation--Guarantees that the amount of money will be available when needed (ie. whole life policy).

D.	Liquidity-- availability of cash to the policy owner.

Q.2)?	What is a viatical settlement?

Q.3)?	During Human Life Value Apporach, you determine insured's after-tax income from ___________ to retirement.?

Q.4)?	The predicted needs of family after the premature death of the insured is referred to as the _______ approach.

Q.5)?	Which of the following are lump sum needs associated with death

B.	Final Medical Expenses

D.	Rent or Mortgage Payments

Q.6)?	Estate tax, day care, and insurance premiums are considered lump sum needs.

Q.7)?	Debt Concellation does not pay off debts.

Q.8)?	What is an emergency reserve for determining lump sum needs?

Q.9)?	Determining Lump Sum Needs includes does not include which of the following:

C.	Insurance Against Suicide

Q.10)?	When is the social security blackout periond?

Q.11)?	The two types of partnership funding methods include the cross purchase method and the entity purchase method.

Q.12)?	Buy-sell funding is a personal use of life insurance.

Q.13)?	___________________________ method is when the partnership buys the policies on the partners (better for more than 2 partners).

( 2 words )

Q.14)?	What are the two corporate funding methods?

Q.15)?	A stock purchase method is

A.	When the corporation buys on policy on each shareholder.

B.	When each partner buys a policy on the other.

C.	When the partnerships buys the policies on the partners.

D.	When each stockholder buys a policy on each of the others.

Q.16)?	The employee would need to give permission for "Key Person" coverage.

Q.17)?	For executive bonuses (aka IRS section 162 Plan)-- the amount of the raise is tax-deductible to the employer and income is ________ to the employee.

Q.18)?	What are the two classes of life insurance policies?

Q.19)?	Industrial or Home Service Insurance are written in small amount (less than 1000)

Q.20)?	A physical exam is not required for ordinary life insurance.

Q.21)?	Permanent policies remain in effect until age _____________.

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