RMI Exam 3 part 1 questions with
verified solutions graded A+ already
passed
Under the needs approach of determining the amount of life insurance to purchase, one consideration is
providing income to the surviving spouse and children during the one- or two-year period following the
breadwinner's death. This period is called the
A. Dependency period
B. Readjustment period
C. Accumulation period
D. Blackout period - correct answer ✔✔B. Readjustment period
Which of the following statements is (are) true with respect to the human life value approach?
I. The human life value approach considers all sources of income that the family receives..
II. The human life value approach does not consider the time value of money-future cash flows are not
discounted back to present value.
A. I only
B. both I and II
C. II only
D. neither I nor II - correct answer ✔✔D. neither I nor II
Bob and Tonya are supporting their children, ages 4 and 2. Bob's father is also financially dependent
upon Bob and Tonya. This type of family is called a(n)
A. blended family
B. traditional family
C. sandwiched family
, D. single-parent family - correct answer ✔✔C. sandwiched family
From an economic perspective, "premature death" is defined as death of a family head
A. Before reaching life expectancy
B. Before both parents have died
C. with outstanding financial obligations
D. Before reaching age 65 - correct answer ✔✔C. with outstanding financial obligations
Some term insurance policies permit the policyholder to exchange the policy for a cash value policy
without having to demonstrate insurability. Such term insurance policies are described as
A. decreasing
B. ordinary
C. convertible
D. renewable - correct answer ✔✔C. convertible
All of the following are characteristics of variable life insurance EXCEPT
A. the policyholder selects where the cash value is invested
B. flexible premium payments
C. the cash value and death benefit vary with investment performance
D. Cash values are not guaranteed - correct answer ✔✔B. Flexible premium payments`
Question 7:Lynn, age 32, would like to purchase permanent life insurance. She is concerned that
premiums may become a burden after she retires. Given her coverage preferences, which of the
following life insurance policies is the best policy for Lynn to purchase?
A. Ordinary whole life insurance
B. Renewable term insurance
verified solutions graded A+ already
passed
Under the needs approach of determining the amount of life insurance to purchase, one consideration is
providing income to the surviving spouse and children during the one- or two-year period following the
breadwinner's death. This period is called the
A. Dependency period
B. Readjustment period
C. Accumulation period
D. Blackout period - correct answer ✔✔B. Readjustment period
Which of the following statements is (are) true with respect to the human life value approach?
I. The human life value approach considers all sources of income that the family receives..
II. The human life value approach does not consider the time value of money-future cash flows are not
discounted back to present value.
A. I only
B. both I and II
C. II only
D. neither I nor II - correct answer ✔✔D. neither I nor II
Bob and Tonya are supporting their children, ages 4 and 2. Bob's father is also financially dependent
upon Bob and Tonya. This type of family is called a(n)
A. blended family
B. traditional family
C. sandwiched family
, D. single-parent family - correct answer ✔✔C. sandwiched family
From an economic perspective, "premature death" is defined as death of a family head
A. Before reaching life expectancy
B. Before both parents have died
C. with outstanding financial obligations
D. Before reaching age 65 - correct answer ✔✔C. with outstanding financial obligations
Some term insurance policies permit the policyholder to exchange the policy for a cash value policy
without having to demonstrate insurability. Such term insurance policies are described as
A. decreasing
B. ordinary
C. convertible
D. renewable - correct answer ✔✔C. convertible
All of the following are characteristics of variable life insurance EXCEPT
A. the policyholder selects where the cash value is invested
B. flexible premium payments
C. the cash value and death benefit vary with investment performance
D. Cash values are not guaranteed - correct answer ✔✔B. Flexible premium payments`
Question 7:Lynn, age 32, would like to purchase permanent life insurance. She is concerned that
premiums may become a burden after she retires. Given her coverage preferences, which of the
following life insurance policies is the best policy for Lynn to purchase?
A. Ordinary whole life insurance
B. Renewable term insurance
