XCEL USES OF LIFE INSURANCE COMPREHENSIVE TEST BANK FULL QUESTIONS AND VERIFIED ANSWERS PACKAGE

XCEL USES OF LIFE INSURANCE
COMPREHENSIVE TEST BANK FULL
QUESTIONS AND VERIFIED ANSWERS
PACKAGE

●● Which of the following pieces of information is NOT gathered
during the personal financial planning process?


A) An individual's assets
B) An individual's expenses
C) An individual's income
D) An individual's civic organization memberships
Answer: D) An individual's civic organization memberships


●● Buy-sell agreements are typically funded by which two insurance
products?


A) Decreasing term insurance and Workers' Compensation
B) Life insurance and disability insurance
C) Endowments and Medicare
D) AD&D and Social Security
Answer: B) Life insurance and disability insurance

, ●● All of these are common personal uses of life insurance EXCEPT


A) Pay final expenses
B) Fund a child's education
C) Replace an insured's income
D) Fund a Buy-Sell agreement
Answer: D) Fund a Buy-Sell agreement


●● Which approach predicts a person's earning potential and determines
how much of that amount would be devoted to dependents?


A) Future value approach
B) Earnings approach
C) Needs approach
D) Human life value approach
Answer: D) Human life value approach


●● When calculating the amount of life insurance needed for an income
earner, what has to be determined when using the Needs Approach?


A) The income earner's future projected income