LOMA 281 Module 2 Lesson 1 - Term Life Insurance Questions And Answers(RATED A)
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Course
LOMA 281
Institution
LOMA 281
Assume that Caryer has life insurance on his own life. Select the box beside each financial need that you think life insurance can meet
Paying household expenses (utility bills, food, clothing, etc)
Covering outstanding debts (mortgage and car loans, etc)
Paying future outstanding medical, hos...
LOMA 281 Module 2 Lesson 1
- Term Life Insurance
Questions And
Answers(RATED A)
Assume that Caryer has life insurance on his own life. Select the box beside each financial need that
you think life insurance can meet
Covering outstanding debts (mortgage and car loans, etc)
Paying future outstanding medical, hospital, and funeral expenses
Providing financial support for the family
Funding a child's education - ANSWER All the above
Term Life Insurance - ANSWER Life Insurance that provides a death benefit only if the insured dies
during the period specified in the policy
True or False:
Few policy terms are shorter than one year - ANSWER True
Level Term Insurance - ANSWER Term life insurance that provides a policy benefit that remains the
same over the term of the policy. Simplest form of term life insurance
, Family Income Coverage - ANSWER A plan of decreasing term life insurance that provides a stated
monthly income benefit amount if the insured dies during the term of coverage
Increasing Term Life Insurance - ANSWER Term life insurance that provides a death benefit that starts
at one amount by some specified amount or percentage at stated intervals over the policy term
Increasing Term Insurance, Level Term Insurance, or Decreasing Term Insurance:
A 5 year term life insurance policy that offers a death benefit of $50,000 for the first year of the
policy term, $40,000 for the second year, and so on. The benefits for the fifth year is $10,000 -
ANSWER Decreasing Term Insurance
Increasing Term Insurance, Level Term Insurance, or Decreasing Term Insurance:
A 5 year term life insurance policy that provides a $100,000 death benefit if the insured dies at
anytime during the 5-year policy term - ANSWER Level Term Insurance
Increasing Term Insurance, Level Term Insurance, or Decreasing Term Insurance:
A 5 year term life insurance policy that pays a $100,000 benefit during the policy's first year, a
%105,000 benefit during the second year, and so on. The benefit during the fifth year is $120,000. -
ANSWER Increasing Term Insurance
Return of Premium (ROP) Term Insurance - ANSWER A form of term life insurance that provides a
death benefit if the insured dies during the policy term and promises a return of premiums if the
insured does not die during the the policy term
Renewable Term Insurance - ANSWER Term life insurance that gives the policyowner the option to
continue the policy's coverage at the end of the specified term without presenting evidence of
insurability (proof that a given person is an insurable risk)
When Michael bought a house, he obtained a mortgage loan from the Archway Bank. He also bought
a mortgage insurance policy from Able Life. Who can Michael name as the beneficiary of his
mortgage insurance policy? - ANSWER His wife, Archway Bank, or someone else
When Michael bought a house, he obtained a mortgage loan from the Archway Bank. He also bought
a mortgage insurance policy from Able Life. If Michael names his wife as the policy beneficiary, does
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