CH. 10 DE FINANCE QUIZ WITH 100%
CORRECT ANSWERS
Beneficiary d- dCORRECT✅✅The dbeneficiary dis dthe dperson dor dentity ddesignated
dto dreceive dthe ddeath dbenefit dfrom da dlife dinsurance dpolicy.
Purpose dof dlife dinsurance d- dCORRECT✅✅The dprimary dpurpose dof dlife dinsurance
dis dto dprovide dfinancial dprotection dfor ddependents dafter dthe dpolicyholder's ddeath.
Greatest dneed dfor dlife dinsurance d- dCORRECT✅✅Households dwith dchildren
dtypically dhave da dgreater dneed dfor dlife dinsurance dto dprovide dfinancial dsupport dfor
dtheir dchildren's dfuture dneeds.
Easy dmethod d- dCORRECT✅✅The d'easy dmethod' dinvolves dmultiplying dthe dcurrent
dincome dby da dset dfactor d(such das d7) dand dadjusting dfor dthe ddesired dreplacement
dpercentage dof dincome.
Family dneed dmethod d- dCORRECT✅✅The d'family dneed dmethod' dinvolves
dcalculating dlife dinsurance dneeds dbased don dthe dnumber dof dchildren dand dthe dage
dof dthe dyoungest dchild.
Dual dincome, dno dkids dmethod d- dCORRECT✅✅This dmethod dapplies dto dcouples
dwith dno dchildren dand dconsiders dthe dfinancial dneeds dof deach dspouse dafter dthe
dother's ddeath.
Formal dcalculation dmethod d- dCORRECT✅✅The d'formal dcalculation dmethod'
dinvolves da ddetailed danalysis dof dvarious dfactors, dincluding dcurrent dand dfuture
dexpenses, dassets, dand dpotential dincome dsources.
Stock dcompanies din dlife dinsurance d- dCORRECT✅✅Around d25% dof dlife dinsurance
dcompanies din dthe dU.S. dare dstock dcompanies, dwhich dare downed dby dshareholders.
Participating dpolicy d- dCORRECT✅✅Participating dpolicies dare dissued dby dmutual
dinsurance dcompanies dand dpay ddividends dto dpolicyholders.
Nonparticipating dpolicy d- dCORRECT✅✅Policies dfrom dstock dlife dinsurance
dcompanies dare dtypically dnonparticipating, dmeaning dthey ddo dnot dpay ddividends.
Guaranteed dpremiums d- dCORRECT✅✅Nonparticipating dpolicies doften doffer
dguaranteed dpremiums, dwhich ddo dnot dchange dthroughout dthe dpolicy dterm.
Term dlife dinsurance d- dCORRECT✅✅Term dlife dinsurance dis da dtemporary dform dof
dcoverage dthat dexpires dafter da dspecified dterm d(e.g., d10, d20, dor d30 dyears).
, Types dof dpermanent dinsurance d- dCORRECT✅✅Term dlife dinsurance dis dtemporary,
dwhile dwhole dlife, dstraight dlife, dordinary dlife, dand dcash dvalue dpolicies dare dtypes dof
dpermanent dinsurance.
Whole dlife d- dCORRECT✅✅Whole dlife dinsurance dis da dtype dof dpermanent
dinsurance dthat dprovides dlifelong dcoverage dwith da dcash dvalue dcomponent.
Whole dlife d- dCORRECT✅✅Whole dlife dinsurance dis dpermanent, dwhile drenewable
dterm, dconversion dterm, ddecreasing dterm, dand dmultiyear dlevel dterm dare dall dforms
dof dtemporary dlife dinsurance.
Cash dvalue d- dCORRECT✅✅Term dinsurance dprovides dcoverage dfor da dspecific
dperiod dand ddoes dnot daccumulate dcash dvalue. dIt donly doffers dprotection dagainst dthe
dloss dof dlife dduring dthe dterm dof dthe dpolicy.
Decreasing dterm d- dCORRECT✅✅Decreasing dterm dinsurance dis da dtype dof
dtemporary dlife dinsurance, dnot dpermanent. dPermanent dlife dinsurance dincludes
dwhole dlife, dvariable dlife, duniversal dlife, dand dadjustable dlife.
Renewable dterm dpolicy d- dCORRECT✅✅Renewable dterm dpolicies dallow dyou dto
drenew dthe dpolicy dafter dthe dterm dends, dbut dpremiums dmay dincrease ddue dto dthe
daging dof dthe dinsured.
Multiyear dlevel dterm dpolicy d- dCORRECT✅✅With da dmultiyear dlevel dterm dpolicy,
dthe dpremium dremains dlevel dand ddoes dnot dincrease dduring dthe dpolicy dterm.
Conversion dterm dpolicy d- dCORRECT✅✅A dconversion dterm dpolicy dallows dthe
dpolicyholder dto dconvert dthe dterm dinsurance dto da dpermanent dpolicy dwithout
dundergoing da dmedical dexam.
Multiyear dlevel dterm d- dCORRECT✅✅A dmultiyear dlevel dterm dpolicy dguarantees
dthat dyour dpremium dwill dstay dthe dsame dthroughout dthe dterm dof dthe dpolicy.
Straight dterm dpolicy d- dCORRECT✅✅A dstraight dterm dpolicy dis danother dname dfor
da dmultiyear dlevel dterm dpolicy, dwhich dhas da dfixed dpremium dfor da dspecified dnumber
dof dyears.
Whole dlife dinsurance dfeature d- dCORRECT✅✅Whole dlife dinsurance dprovides da
ddeath dbenefit dand dbuilds dcash dvalue, dbut dit ddoes dnot dreturn dall dpremiums dif dyou
dsurvive dthe dpolicy dterm.
Cash dvalue din dwhole dlife dinsurance d- dCORRECT✅✅The dprimary dbenefit dof
dwhole dlife dinsurance dfor dsavers dis dthat dit dbuilds dcash dvalue dover dtime, dwhich dcan
dbe dborrowed dagainst dor dwithdrawn.
CORRECT ANSWERS
Beneficiary d- dCORRECT✅✅The dbeneficiary dis dthe dperson dor dentity ddesignated
dto dreceive dthe ddeath dbenefit dfrom da dlife dinsurance dpolicy.
Purpose dof dlife dinsurance d- dCORRECT✅✅The dprimary dpurpose dof dlife dinsurance
dis dto dprovide dfinancial dprotection dfor ddependents dafter dthe dpolicyholder's ddeath.
Greatest dneed dfor dlife dinsurance d- dCORRECT✅✅Households dwith dchildren
dtypically dhave da dgreater dneed dfor dlife dinsurance dto dprovide dfinancial dsupport dfor
dtheir dchildren's dfuture dneeds.
Easy dmethod d- dCORRECT✅✅The d'easy dmethod' dinvolves dmultiplying dthe dcurrent
dincome dby da dset dfactor d(such das d7) dand dadjusting dfor dthe ddesired dreplacement
dpercentage dof dincome.
Family dneed dmethod d- dCORRECT✅✅The d'family dneed dmethod' dinvolves
dcalculating dlife dinsurance dneeds dbased don dthe dnumber dof dchildren dand dthe dage
dof dthe dyoungest dchild.
Dual dincome, dno dkids dmethod d- dCORRECT✅✅This dmethod dapplies dto dcouples
dwith dno dchildren dand dconsiders dthe dfinancial dneeds dof deach dspouse dafter dthe
dother's ddeath.
Formal dcalculation dmethod d- dCORRECT✅✅The d'formal dcalculation dmethod'
dinvolves da ddetailed danalysis dof dvarious dfactors, dincluding dcurrent dand dfuture
dexpenses, dassets, dand dpotential dincome dsources.
Stock dcompanies din dlife dinsurance d- dCORRECT✅✅Around d25% dof dlife dinsurance
dcompanies din dthe dU.S. dare dstock dcompanies, dwhich dare downed dby dshareholders.
Participating dpolicy d- dCORRECT✅✅Participating dpolicies dare dissued dby dmutual
dinsurance dcompanies dand dpay ddividends dto dpolicyholders.
Nonparticipating dpolicy d- dCORRECT✅✅Policies dfrom dstock dlife dinsurance
dcompanies dare dtypically dnonparticipating, dmeaning dthey ddo dnot dpay ddividends.
Guaranteed dpremiums d- dCORRECT✅✅Nonparticipating dpolicies doften doffer
dguaranteed dpremiums, dwhich ddo dnot dchange dthroughout dthe dpolicy dterm.
Term dlife dinsurance d- dCORRECT✅✅Term dlife dinsurance dis da dtemporary dform dof
dcoverage dthat dexpires dafter da dspecified dterm d(e.g., d10, d20, dor d30 dyears).
, Types dof dpermanent dinsurance d- dCORRECT✅✅Term dlife dinsurance dis dtemporary,
dwhile dwhole dlife, dstraight dlife, dordinary dlife, dand dcash dvalue dpolicies dare dtypes dof
dpermanent dinsurance.
Whole dlife d- dCORRECT✅✅Whole dlife dinsurance dis da dtype dof dpermanent
dinsurance dthat dprovides dlifelong dcoverage dwith da dcash dvalue dcomponent.
Whole dlife d- dCORRECT✅✅Whole dlife dinsurance dis dpermanent, dwhile drenewable
dterm, dconversion dterm, ddecreasing dterm, dand dmultiyear dlevel dterm dare dall dforms
dof dtemporary dlife dinsurance.
Cash dvalue d- dCORRECT✅✅Term dinsurance dprovides dcoverage dfor da dspecific
dperiod dand ddoes dnot daccumulate dcash dvalue. dIt donly doffers dprotection dagainst dthe
dloss dof dlife dduring dthe dterm dof dthe dpolicy.
Decreasing dterm d- dCORRECT✅✅Decreasing dterm dinsurance dis da dtype dof
dtemporary dlife dinsurance, dnot dpermanent. dPermanent dlife dinsurance dincludes
dwhole dlife, dvariable dlife, duniversal dlife, dand dadjustable dlife.
Renewable dterm dpolicy d- dCORRECT✅✅Renewable dterm dpolicies dallow dyou dto
drenew dthe dpolicy dafter dthe dterm dends, dbut dpremiums dmay dincrease ddue dto dthe
daging dof dthe dinsured.
Multiyear dlevel dterm dpolicy d- dCORRECT✅✅With da dmultiyear dlevel dterm dpolicy,
dthe dpremium dremains dlevel dand ddoes dnot dincrease dduring dthe dpolicy dterm.
Conversion dterm dpolicy d- dCORRECT✅✅A dconversion dterm dpolicy dallows dthe
dpolicyholder dto dconvert dthe dterm dinsurance dto da dpermanent dpolicy dwithout
dundergoing da dmedical dexam.
Multiyear dlevel dterm d- dCORRECT✅✅A dmultiyear dlevel dterm dpolicy dguarantees
dthat dyour dpremium dwill dstay dthe dsame dthroughout dthe dterm dof dthe dpolicy.
Straight dterm dpolicy d- dCORRECT✅✅A dstraight dterm dpolicy dis danother dname dfor
da dmultiyear dlevel dterm dpolicy, dwhich dhas da dfixed dpremium dfor da dspecified dnumber
dof dyears.
Whole dlife dinsurance dfeature d- dCORRECT✅✅Whole dlife dinsurance dprovides da
ddeath dbenefit dand dbuilds dcash dvalue, dbut dit ddoes dnot dreturn dall dpremiums dif dyou
dsurvive dthe dpolicy dterm.
Cash dvalue din dwhole dlife dinsurance d- dCORRECT✅✅The dprimary dbenefit dof
dwhole dlife dinsurance dfor dsavers dis dthat dit dbuilds dcash dvalue dover dtime, dwhich dcan
dbe dborrowed dagainst dor dwithdrawn.
