HLLQP - LIFE 02 FC - Term Life Insurance questions with correct answers

Term Insurance is appropriate for temporary life insurance needs. Can you give some examples of temporary life insurance needs? HLLQP - LIFE 02 FC Answer Paying off a mortgage in the event of death: This is a temporary insurance need because most mortgages are amortized over 25 years or less. Funding a child's education if the parent were to die: This is a temporary insurance because the funds should be saved - and therefore the insurance no longer needed - by the time the child reaches around age 18. As a rule, if you can fill in the blanks in the following statement, the insurance need is temporary need, meaning that term insurance is appropriate: "This insurance need will go away on <Month, Day. 2XXX>, or in years." Under what circumstances would a death by suicide still result in the death benefit being paid? HLLQP - LIFE 02 FC Answer If suicide occurred more than two years after the policy was issued. Suicide Exclusion Period: If the life-insured commits suicide within the first two years of the policy, the death benefits will not be payable. IF suicide occurs after two years (even two years plus one day), the death benefit w