ACE 240 - Final Exam Test Bank with all Correct & 100%
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Graded A+
Which of the following isn't a benefit of Life Insurance?
A.the death benefit is part of the probate property
B.Protection from Creditors
C.Tax Benefits
D. Vehicle Savings ✔Correct Answer-A
Which of the following is NOT the correct description for term life insurance:
A. Allow renewal for another term without showing medical review
B. Build cash value
C. Economical way for young families to purchase large amounts of life insurance
D. Death benefit is usually income tax free ✔Correct Answer-B
What are the benefits of whole life Insurance?
a) Financial protection for dependents
b) Protection from creditors of the plan owner
c) Tax benefits
d) vehicle for savings
e) All of the above ✔Correct Answer-E
Which of the following is NOT a characteristic of an HMO:
A) You must designate a primary care physician
B) Less expensive premiums than a PPO
C) Your primary care physician must refer you to a specialist (you cannot choose your own)
D) Higher deductibles than a PPO ✔Correct Answer-D
Drawbacks of an HMO include
a. limited choice of physicians.
, b. no coverage for preventive treatments.
c. limited availability through group plans.
d. higher deductibles and copayments compared to other plans. ✔Correct Answer-A
What is one of the common retirement mistakes?
A. Not starting a 401K early enough
B. Not being married at the time of retirement
C. Paying off debt by retirement
D. Living to long ✔Correct Answer-A
Which of the following is not an advantage of whole life insurance?
a.) Savings vehicle
b.) Provides for a need that disappears over time
c.) Borrow against cash value
d.) Death benefits payable to beneficiaries ✔Correct Answer-B
Which of the following are NOT an appropriate risk management strategy?
A. Transfer
B. Ignorance
C. Acceptance
D. Reduction ✔Correct Answer-B
Which of the following is a major difference between Traditional IRA and Roth IRA?
A. Earnings in ROTH IRA are completely tax-free while earnings in Traditional IRA account are tax
deferred
B. ROTH IRA contribution is tax deductible while contribution to Traditional IRA is not
C. ROTH IRA account growth is treated as income and will be taxed; Traditional IRA won't be
D. Traditional IRA allows you to withdraw at any time without penalty, but ROTH IRA doesn't
✔Correct Answer-A
What is not a covered under the Renter's Insurance?
Furniture
Structure of the home
Clothing
Verified Answers |Actual Complete Exam |Already
Graded A+
Which of the following isn't a benefit of Life Insurance?
A.the death benefit is part of the probate property
B.Protection from Creditors
C.Tax Benefits
D. Vehicle Savings ✔Correct Answer-A
Which of the following is NOT the correct description for term life insurance:
A. Allow renewal for another term without showing medical review
B. Build cash value
C. Economical way for young families to purchase large amounts of life insurance
D. Death benefit is usually income tax free ✔Correct Answer-B
What are the benefits of whole life Insurance?
a) Financial protection for dependents
b) Protection from creditors of the plan owner
c) Tax benefits
d) vehicle for savings
e) All of the above ✔Correct Answer-E
Which of the following is NOT a characteristic of an HMO:
A) You must designate a primary care physician
B) Less expensive premiums than a PPO
C) Your primary care physician must refer you to a specialist (you cannot choose your own)
D) Higher deductibles than a PPO ✔Correct Answer-D
Drawbacks of an HMO include
a. limited choice of physicians.
, b. no coverage for preventive treatments.
c. limited availability through group plans.
d. higher deductibles and copayments compared to other plans. ✔Correct Answer-A
What is one of the common retirement mistakes?
A. Not starting a 401K early enough
B. Not being married at the time of retirement
C. Paying off debt by retirement
D. Living to long ✔Correct Answer-A
Which of the following is not an advantage of whole life insurance?
a.) Savings vehicle
b.) Provides for a need that disappears over time
c.) Borrow against cash value
d.) Death benefits payable to beneficiaries ✔Correct Answer-B
Which of the following are NOT an appropriate risk management strategy?
A. Transfer
B. Ignorance
C. Acceptance
D. Reduction ✔Correct Answer-B
Which of the following is a major difference between Traditional IRA and Roth IRA?
A. Earnings in ROTH IRA are completely tax-free while earnings in Traditional IRA account are tax
deferred
B. ROTH IRA contribution is tax deductible while contribution to Traditional IRA is not
C. ROTH IRA account growth is treated as income and will be taxed; Traditional IRA won't be
D. Traditional IRA allows you to withdraw at any time without penalty, but ROTH IRA doesn't
✔Correct Answer-A
What is not a covered under the Renter's Insurance?
Furniture
Structure of the home
Clothing
