RMI 3011 Ch. 10 Question and answers
rated A+
life insurance is an insurance contract that... - correct answer ✔pays a
specified amount of money (the "face amount")
life insurance is an insurance contract that... - correct answer ✔to a person
or organization (the "beneficiary")
life insurance is an insurance contract that... - correct answer ✔when a
person named on the policy (the "insured") dies
true - correct answer ✔many different types of life insurance exist. Some
have variable face amounts, some incorporate a savings component (the
"cash value") that can be withdrawn or borrowed against, and some have
provisions that permit early payments or extend the coverage period
financial needs after death - correct answer ✔executor funds - burial
expenses, estate settlement costs
financial needs after death - correct answer ✔income needs of financially-
dependent survivors
- children
- spouse or partner
- other dependents (grandchildren, siblings, parents, friends, etc.)
financial needs after death - correct answer ✔business-related exposures
- dependent projects (e.g., client relationships)
, - replacement of key employee
- ownership
determining face amounts - correct answer ✔- needs
- human life value
needs - correct answer ✔- executor funds
- income needs of financially-dependent survivors
- business-related exposures
human life value - correct answer ✔- replace income in present value terms
- consider expected salary increases
- subtract living expenses and taxes
types of life insurance - correct answer ✔- term life
- whole life
- universal life
- other
term insurance - correct answer ✔designed to provide protection if the
insured person dies during a specified period of time
term insurance - correct answer ✔policy has a set end date, no coverage
after (can be extended)
term insurance - correct answer ✔no savings component
rated A+
life insurance is an insurance contract that... - correct answer ✔pays a
specified amount of money (the "face amount")
life insurance is an insurance contract that... - correct answer ✔to a person
or organization (the "beneficiary")
life insurance is an insurance contract that... - correct answer ✔when a
person named on the policy (the "insured") dies
true - correct answer ✔many different types of life insurance exist. Some
have variable face amounts, some incorporate a savings component (the
"cash value") that can be withdrawn or borrowed against, and some have
provisions that permit early payments or extend the coverage period
financial needs after death - correct answer ✔executor funds - burial
expenses, estate settlement costs
financial needs after death - correct answer ✔income needs of financially-
dependent survivors
- children
- spouse or partner
- other dependents (grandchildren, siblings, parents, friends, etc.)
financial needs after death - correct answer ✔business-related exposures
- dependent projects (e.g., client relationships)
, - replacement of key employee
- ownership
determining face amounts - correct answer ✔- needs
- human life value
needs - correct answer ✔- executor funds
- income needs of financially-dependent survivors
- business-related exposures
human life value - correct answer ✔- replace income in present value terms
- consider expected salary increases
- subtract living expenses and taxes
types of life insurance - correct answer ✔- term life
- whole life
- universal life
- other
term insurance - correct answer ✔designed to provide protection if the
insured person dies during a specified period of time
term insurance - correct answer ✔policy has a set end date, no coverage
after (can be extended)
term insurance - correct answer ✔no savings component
