Question 1

Basic health insurance coverage should include hospital costs,supplementary prescription drug charges,and dental maintenance.

Accepted Answer

A) True 
 B)False

Question 2

Generally,disability income policies with longer waiting periods

Accepted Answer

A)   have higher premiums.
B)   have lower premiums.
C)   have about the same premium.
D)   Are issued by smaller insurance companies.
E)   Are issued by larger insurance companies.F) C) and D)
G) A) and D)

Question 3

Most people are more likely to lose their income due to death than due to disability.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an important trade off in purchasing disability income insurance?

Accepted Answer

A)   waiting period
B)   amount of down-payment
C)   duration of benefit.
D)   accident and sickness coverage.
E)   guaranteed renewability.F) A) and B)
G) B) and E)

Question 5

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

Accepted Answer

A) True 
 B)False

Question 6

Disability can cause even greater financial problems than death.

Accepted Answer

A) True 
 B)False

Question 7

Universal life is a type of permanent life insurance

Accepted Answer

A) True 
 B)False

Question 8

You wish to build up a cash surrender value within your life insurance policy.Which of the following types of life insurance would permit you to do so? I.Whole Life Insurance
II) Term-to-100 Insurance
III) Universal Life Insurance
IV) Declining Term Insurance

Accepted Answer

A)   I and III only
B)   I,II and III only
C)   IV only
D)   I,III and IV only
E)   I and II onlyF) A) and E)
G) A) and B)

Question 9

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Accepted Answer

A) True 
 B)False

Question 10

Which type of insurance is probably the most neglected form of available insurance protection?

Accepted Answer

A)   life
B)   liability
C)   disability
D)   car
E)   home and propertyF) A) and B)
G) All of the above

Question 11

Because you are young and healthy now,you may overlook the very real need for

Accepted Answer

A)   Disability income insurance.
B)   health insurance.
C)   Dental insurance.
D)   vision care insurance.
E)   liability insurance.F) C) and D)
G) A) and E) A

Question 12

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Accepted Answer

A) True 
 B)False  True

Question 13

Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

Accepted Answer

A)   group health
B)   individual health
C)   hospital expense
D)   surgical expense
E)   physician's expenseF) A) and E)
G) A) and C) B

Question 14

Group health insurance covers all of your health insurance needs.

Accepted Answer

A) True 
 B)False

Question 15

Individual health insurance covers either one person or family.

Accepted Answer

A) True 
 B)False

Question 16

What can be offered with supplemental health and disability insurance? What are their benefits and limitations?

Accepted Answer

Your basic coverage should include hospi...

Question 17

Who has the greatest need for life insurance?

Accepted Answer

A)   children
B)   singles living alone
C)   singles living with parents
D)   dual income couple
E)   households with small childrenF) A) and E)
G) B) and E)

Question 18

You probably have little or no need for life insurance if you are

Accepted Answer

A)   married and your spouse works.
B)   divorced and have two children.
C)   a single person living alone or with parents.
D)   gainfully employed.
E)   a household with several children.F) A) and B)
G) B) and E)

Question 19

A good supplemental health and disability insurance plan should

Accepted Answer

A)   offer basic coverage for hospital costs.
B)   provide for prescription drug cost not covered by your provincial plan.
C)   provide for dental maintenance including dentures and oral surgery.
D)   include vision care insurance.
E)   offer basic coverage for hospital costs,provide for prescription drug cost not covered by your provincial plan,provide for dental maintenance including dentures and oral surgery,and include vision care insurance.F) B) and D)
G) B) and C)

Question 20

Suppose you are a typical family.Your annual income is $60,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of

Accepted Answer

A)   $245,000.
B)   $294,000.
C)   $345,000.
D)   $400,000.
E)   $450,000.F) A) and D)
G) A) and C)

Exam 9: Health and Disability Income Insurance

Basic health insurance coverage should include hospital costs,supplementary prescription drug charges,and dental maintenance.

Correct AnswerverifiedShow Answer

Generally,disability income policies with longer waiting periods

Correct AnswerverifiedShow Answer

Most people are more likely to lose their income due to death than due to disability.

Correct AnswerverifiedShow Answer

Which of the following is not an important trade off in purchasing disability income insurance?

Correct AnswerverifiedShow Answer

Agents and direct insurers represent multiple insurance companies and can offer the products of those companies where the agent or direct insurer has a contract.

Correct AnswerverifiedShow Answer

Disability can cause even greater financial problems than death.

Correct AnswerverifiedShow Answer

Universal life is a type of permanent life insurance

Correct AnswerverifiedShow Answer

You wish to build up a cash surrender value within your life insurance policy.Which of the following types of life insurance would permit you to do so? I.Whole Life Insurance II) Term-to-100 Insurance III) Universal Life Insurance IV) Declining Term Insurance

Correct AnswerverifiedShow Answer

Most people buy life insurance to protect someone who depends on them from financial losses caused by their death.

Correct AnswerverifiedShow Answer

Which type of insurance is probably the most neglected form of available insurance protection?

Correct AnswerverifiedShow Answer

Because you are young and healthy now,you may overlook the very real need for

Correct AnswerverifiedA

An interest-adjusted index is a method of evaluating the cost of life insurance by taking into account the time value of money.

Correct AnswerverifiedTrue

Which health insurance coverage requires careful shopping because coverage and cost vary from company to company?

Correct AnswerverifiedB

Group health insurance covers all of your health insurance needs.

Correct AnswerverifiedShow Answer

Individual health insurance covers either one person or family.

Correct AnswerverifiedShow Answer

What can be offered with supplemental health and disability insurance? What are their benefits and limitations?

Correct AnswerverifiedYour basic coverage should include hospi...View AnswerShow Answer

Who has the greatest need for life insurance?

Correct AnswerverifiedShow Answer

You probably have little or no need for life insurance if you are

Correct AnswerverifiedShow Answer

A good supplemental health and disability insurance plan should

Correct AnswerverifiedShow Answer

Suppose you are a typical family.Your annual income is $60,000.Use the income replacement method to determine your need for life insurance.Your insurance should be in the amount of

Correct AnswerverifiedShow Answer

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A

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True

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B

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Your basic coverage should include hospi...
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