LOMA 281 Module 2 Lesson 1 - Term Life Insurance EXAM Question... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
LOMA 281 Module 2 Lesson 1 - Term Life Insurance EXAM Questions And
Correct Answers 2024/2025(GRADED A+)
1. Assume that Caryer has life insurance on his own life. Select the box beside
each financial need that you think life insurance can meet
Paying household expenses (utility bills, food, clothing, etc) Covering
outstanding debts (mortgage and car loans, etc)
Paying future outstanding medical, hospital, and funeral expenses
Providing financial support for the family
Funding a child's education: All the above
2. Term Life Insurance: Life Insurance that provides a death benefit only if the
insured dies during the period specified in the policy
1/
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,LOMA 281 Module 2 Lesson 1 - Term Life Insurance EXAM Question... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
3. True or False:
Few policy terms are shorter than one year: True
4. Level Term Insurance: Term life insurance that provides a policy benefit that
remains the same over the term of the policy. Simplest form of term life insurance
5. Decreasing Term Life Insurance: Term life insurance that provides a policy
benefit that decreases in amount over the term of coverage
6. Mortgage Insurance: A plan of decreasing term insurance designed to provide
a benefit amount that corresponds to the decreasing amount owed on a
mortgage loan
7. When Michael bought a house, he obtained a mortgage loan from the
Archway Bank. He also bought a mortgage insurance policy from Able Life. Is
2/
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,LOMA 281 Module 2 Lesson 1 - Term Life Insurance EXAM Question... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
Archway Bank a party to Michael's mortgage insurance contract with Able
Life?: No - the mortgage loan and the insurance contract are two separate transac-
tions
8. When Michael bought a house, he obtained a mortgage loan from the Arch-
way Bank. He also bought a mortgage insurance policy from Able Life. Who
can Michael name as the beneficiary of his mortgage insurance policy?: His
wife, Archway Bank, or someone else
9. When Michael bought a house, he obtained a mortgage loan from the
Archway Bank. He also bought a mortgage insurance policy from Able Life. If
Michael names his wife as the policy beneficiary, does she have to use the
policy proceeds to repay the mortgage loans?: No - She can use the proceeds
3/
3 of 22 01/09/2024, 13
LOMA 281 Module 2 Lesson 1 - Term Life Insurance EXAM Questions And
Correct Answers 2024/2025(GRADED A+)
1. Assume that Caryer has life insurance on his own life. Select the box beside
each financial need that you think life insurance can meet
Paying household expenses (utility bills, food, clothing, etc) Covering
outstanding debts (mortgage and car loans, etc)
Paying future outstanding medical, hospital, and funeral expenses
Providing financial support for the family
Funding a child's education: All the above
2. Term Life Insurance: Life Insurance that provides a death benefit only if the
insured dies during the period specified in the policy
1/
1 of 22 01/09/2024, 13
,LOMA 281 Module 2 Lesson 1 - Term Life Insurance EXAM Question... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
3. True or False:
Few policy terms are shorter than one year: True
4. Level Term Insurance: Term life insurance that provides a policy benefit that
remains the same over the term of the policy. Simplest form of term life insurance
5. Decreasing Term Life Insurance: Term life insurance that provides a policy
benefit that decreases in amount over the term of coverage
6. Mortgage Insurance: A plan of decreasing term insurance designed to provide
a benefit amount that corresponds to the decreasing amount owed on a
mortgage loan
7. When Michael bought a house, he obtained a mortgage loan from the
Archway Bank. He also bought a mortgage insurance policy from Able Life. Is
2/
2 of 22 01/09/2024, 13
,LOMA 281 Module 2 Lesson 1 - Term Life Insurance EXAM Question... file:///C:/Users/Pavilion/Downloads/LOMA%20281%20Module%2
Archway Bank a party to Michael's mortgage insurance contract with Able
Life?: No - the mortgage loan and the insurance contract are two separate transac-
tions
8. When Michael bought a house, he obtained a mortgage loan from the Arch-
way Bank. He also bought a mortgage insurance policy from Able Life. Who
can Michael name as the beneficiary of his mortgage insurance policy?: His
wife, Archway Bank, or someone else
9. When Michael bought a house, he obtained a mortgage loan from the
Archway Bank. He also bought a mortgage insurance policy from Able Life. If
Michael names his wife as the policy beneficiary, does she have to use the
policy proceeds to repay the mortgage loans?: No - She can use the proceeds
3/
3 of 22 01/09/2024, 13
