1. Which is the key characteristic of universal life insurance?

1. Which is the key characteristic of universal life insurance?
A
Option A: Flexible premiums
B
Option B: Selection of investment options
C
Option C: No cash value
D
Option D: Lack of permanence
2. A life insurance needs analysis includes estimating your
A
Option A: business needs.
B
Option B: dependents’ financial needs.
C
Option C: parents' needs.
D
Option D: risk tolerance.
3.
Life insurance is based on the concept of
A
Option A: risk pooling.
B
Option B: diversification.
C
Option C: mortality intermediation.
D
Option D: actuarial science.
4.
Which of the following would NOT be eligible for survivor benefits under Social Security?
A
Option A: A 17-year-old son.
B
Option B: All would receive survivor benefits.
C
Option C: A 59-year-old employed wife with no children under age 18.
D
Option D: A 40-year-old unemployed wife with a 10-year old daughter.
5. Which factor affects life insurance premiums? (Select all that apply.)
A
Option A :The tax bracket of the person seeking the insurance.
B
Option B :Expenses incurred by the insurer.
C
Option C :The quality of the medical insurance policy for the person seeking the insurance.
D
Option D :The risk classification of the person seeking the insurance.
E
Option E :Profit to the insurance company owners.