Chapter 10 Personal Finance verified already passed

Chapter 10 Personal Financeb - correct answer 24. A person who is named to receive the benefits from an insurance policy is a(n) A. Contract. B. Beneficiary. C. Policyholder. D. Insurer. E. Child. b - correct answer 25. Most people buy life insurance to A. Pay off a mortgage. B. Protect the people who depend on the insured from financial losses caused by his or her death. C. Pay for a vacation. D. Spend money. E. Pay taxes. d - correct answer 26. Which of the following households most likely has the greatest need for life insurance? A. Single adult living alone. B. Adult child living with parents. C. Retired couple with a pension. D. Household with children. E. Independently wealthy adult. a - correct answer 27. Judy and James have a 4-year-old child. They plan to purchase life insurance using this formula: Current income × 7 × 70%. Which method are they using to determine their life insurance needs? A. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method d - correct answer 28. Jeff and Erica have two children. They plan to purchase life insurance using this formula: (18 - Youngest child's age) × $10,000. Which method are they using to determine their life insurance needs? A. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method b - correct answer 29. Donald and Charlene are married and do not have any children. Each plans to continue to work after the other one dies. Which method are they using to determine their life insurance needs? A. Easy method B. Dual income, no kids method C. Formal calculation method D. Nonworking spouse method E. Family needs method e - correct answer 30. Francisco and Maria have three children and want to complete a detailed worksheet to determine the amount of life insurance they need to purchase. Which method are they using to determine their life insurance needs? A. Easy method B. Dual income, no kids method C. Formal calculation method