Exam FX Life Insurance Basics |\ |\ |\ |\ |\
questions with answers |\ |\
survivor protection - CORRECT ANSWERS ✔✔provides necessary
|\ |\ |\ |\ |\ |\ |\
funds for survivors to maintain their current lifestyle
|\ |\ |\ |\ |\ |\ |\
estate creation - CORRECT ANSWERS ✔✔is created by the
|\ |\ |\ |\ |\ |\ |\ |\ |\
purchase of life insurance |\ |\ |\
cash accumulation - CORRECT ANSWERS ✔✔whole life policies
|\ |\ |\ |\ |\ |\ |\
liqudity - CORRECT ANSWERS ✔✔policies cash values can be
|\ |\ |\ |\ |\ |\ |\ |\ |\
borrowed against at any time |\ |\ |\ |\
estate conversion - CORRECT ANSWERS ✔✔proceeds from life
|\ |\ |\ |\ |\ |\ |\ |\
insurance many be used to pay inheritance and federal taxes
|\ |\ |\ |\ |\ |\ |\ |\ |\
human life value approach - CORRECT ANSWERS ✔✔estimates
|\ |\ |\ |\ |\ |\ |\ |\
income loss to the family in the event of the insureds death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
needs approach - CORRECT ANSWERS ✔✔determined by the
|\ |\ |\ |\ |\ |\ |\ |\
financial needs a family will have after insureds death
|\ |\ |\ |\ |\ |\ |\ |\
buy sell funding - CORRECT ANSWERS ✔✔determines what will
|\ |\ |\ |\ |\ |\ |\ |\ |\
be done with a business if the owner dies or becomes disabled
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
, cross purchase - CORRECT ANSWERS ✔✔each business partner
|\ |\ |\ |\ |\ |\ |\ |\
buys a policy on the other partner
|\ |\ |\ |\ |\ |\
entity purchase - CORRECT ANSWERS ✔✔the partnership buys
|\ |\ |\ |\ |\ |\ |\ |\
the policies on the partners
|\ |\ |\ |\
stock purchase - CORRECT ANSWERS ✔✔privately owned
|\ |\ |\ |\ |\ |\ |\
stockholders buy policies on each of the other stockholders |\ |\ |\ |\ |\ |\ |\ |\
stock redemption - CORRECT ANSWERS ✔✔the corporation buys
|\ |\ |\ |\ |\ |\ |\ |\
one policy on each shareholder
|\ |\ |\ |\
key person insurance - CORRECT ANSWERS ✔✔pays to the
|\ |\ |\ |\ |\ |\ |\ |\ |\
business when a key employee dies |\ |\ |\ |\ |\
participating policy - CORRECT ANSWERS ✔✔annual dividends |\ |\ |\ |\ |\ |\ |\
are paid to the policy holder
|\ |\ |\ |\ |\
nonparticipating policy - CORRECT ANSWERS ✔✔actual cost of |\ |\ |\ |\ |\ |\ |\ |\
providing the insurance |\ |\
fixed life - CORRECT ANSWERS ✔✔guarantied minimums are
|\ |\ |\ |\ |\ |\ |\ |\
stated in the contract |\ |\ |\
variable life - CORRECT ANSWERS ✔✔cash value accumulates
|\ |\ |\ |\ |\ |\ |\ |\
depending on stocks |\ |\
questions with answers |\ |\
survivor protection - CORRECT ANSWERS ✔✔provides necessary
|\ |\ |\ |\ |\ |\ |\
funds for survivors to maintain their current lifestyle
|\ |\ |\ |\ |\ |\ |\
estate creation - CORRECT ANSWERS ✔✔is created by the
|\ |\ |\ |\ |\ |\ |\ |\ |\
purchase of life insurance |\ |\ |\
cash accumulation - CORRECT ANSWERS ✔✔whole life policies
|\ |\ |\ |\ |\ |\ |\
liqudity - CORRECT ANSWERS ✔✔policies cash values can be
|\ |\ |\ |\ |\ |\ |\ |\ |\
borrowed against at any time |\ |\ |\ |\
estate conversion - CORRECT ANSWERS ✔✔proceeds from life
|\ |\ |\ |\ |\ |\ |\ |\
insurance many be used to pay inheritance and federal taxes
|\ |\ |\ |\ |\ |\ |\ |\ |\
human life value approach - CORRECT ANSWERS ✔✔estimates
|\ |\ |\ |\ |\ |\ |\ |\
income loss to the family in the event of the insureds death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
needs approach - CORRECT ANSWERS ✔✔determined by the
|\ |\ |\ |\ |\ |\ |\ |\
financial needs a family will have after insureds death
|\ |\ |\ |\ |\ |\ |\ |\
buy sell funding - CORRECT ANSWERS ✔✔determines what will
|\ |\ |\ |\ |\ |\ |\ |\ |\
be done with a business if the owner dies or becomes disabled
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
, cross purchase - CORRECT ANSWERS ✔✔each business partner
|\ |\ |\ |\ |\ |\ |\ |\
buys a policy on the other partner
|\ |\ |\ |\ |\ |\
entity purchase - CORRECT ANSWERS ✔✔the partnership buys
|\ |\ |\ |\ |\ |\ |\ |\
the policies on the partners
|\ |\ |\ |\
stock purchase - CORRECT ANSWERS ✔✔privately owned
|\ |\ |\ |\ |\ |\ |\
stockholders buy policies on each of the other stockholders |\ |\ |\ |\ |\ |\ |\ |\
stock redemption - CORRECT ANSWERS ✔✔the corporation buys
|\ |\ |\ |\ |\ |\ |\ |\
one policy on each shareholder
|\ |\ |\ |\
key person insurance - CORRECT ANSWERS ✔✔pays to the
|\ |\ |\ |\ |\ |\ |\ |\ |\
business when a key employee dies |\ |\ |\ |\ |\
participating policy - CORRECT ANSWERS ✔✔annual dividends |\ |\ |\ |\ |\ |\ |\
are paid to the policy holder
|\ |\ |\ |\ |\
nonparticipating policy - CORRECT ANSWERS ✔✔actual cost of |\ |\ |\ |\ |\ |\ |\ |\
providing the insurance |\ |\
fixed life - CORRECT ANSWERS ✔✔guarantied minimums are
|\ |\ |\ |\ |\ |\ |\ |\
stated in the contract |\ |\ |\
variable life - CORRECT ANSWERS ✔✔cash value accumulates
|\ |\ |\ |\ |\ |\ |\ |\
depending on stocks |\ |\
