The purpose of life insurance is to protect the person on whose life an insurance policy is issued.
True
False - correct answer False
The primary
... [Show More] reason for buying life insurance is to obtain a high-quality investment.
False
True - correct answer False
A modest funeral can easily cost more than $10,000.
False
True - correct answer True
The major reason that people buy life insurance is to protect the person whose life is insured.
True
False - correct answer False
Life insurance is the best way to address the "living-too-long" problem.
True
False - correct answer False
The largest potential financial loss resulting from premature death is lost income.
False
True - correct answer True
Since homemakers do not have money income, no financial loss results from the premature death of a homemaker.
False
True - correct answer False
Your need for life insurance will change significantly over the course of your life cycle.
True
False - correct answer True
The amount of Social Security benefits received by survivors depends on the amount of income earned during the lifetime of the deceased that was subject to Social Security taxes.
True
False - correct answer True
The cost of replacing the household labor of a stay-at-home spouse should be included in life insurance planning.
False
True - correct answer True
Married couples should integrate their life insurance plans and combine their life insurance needs in one policy on the life of one of the spouses.
True
False - correct answer False
Life insurance proceeds are nontaxable to the beneficiary.
True
False - correct answer True
Life insurance needs typically increase while assets decrease over the course of one's life.
True
False - correct answer False
As a family matures, savings and investments may exceed potential losses from premature death and reduce or eliminate the need for life insurance.
True
False - correct answer True
If losses from a premature death exceed resources available, life insurance is probably needed.
False
True - correct answer True
Younger families should be wary of using retirement money for living expenses after the death of an income provider.
True
False - correct answer True
The need for life insurance is usually low during retirement.
True
False - correct answer True
The multiple-of-earnings approach consists of multiplying one's income by some factor to derive an estimate of the amount of life insurance needed.
True
False - correct answer True
The needs-based approach to estimating life insurance coverage considers all of the factors that might affect the level of need.
False
True - correct answer True
The needs-based approach is not as accurate as the multiple-of-earnings approach.
True [Show Less]