RMI FInal Exam| 100 Questions| Accurate Answers|
Executor Funds - ANSWER burial expenses, estate settlement costs Income needs of financially-dependent survivors - ANSWER Children Spouse or partner Other dependents (grandchildren, siblings, parents, friends, etc.) Business-related exposures - ANSWER Dependent projects (e.g., client relationships) Replacement of key employee Ownership Face Amount NEEDS - ANSWER Executor funds Income needs of financially-dependent survivors Business-related exposures Face Amount HUMAN LIFE VALUE - ANSWER Replace income in present value terms Consider expected salary increases Subtract living expenses and taxes Types of life insurance - ANSWER Term life Whole life Universal life other Term insurance - ANSWER Designed to provide protection if the insured person dies during a specified period of time Policy has a set end date, no coverage after (can be extended) No savings component Least expensive premiums per dollar of coverage Whole life insurance - ANSWER Designed to provide protection for the entire life of the insured No set end date (maturity provision) Savings component (builds up a"cash value") Premiums set by the insurer More expensive than term insurance Whole life premiums: Straight Life - A
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