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RMI 3011 Exam 3 FSU RMI 3011 Florida State University -Question and answers 100% correct $13.49
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RMI 3011 Exam 3 FSU RMI 3011 Florida State University -Question and answers 100% correct
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RMI 3011 Exam 3 FSU RMI 3011 Florida State University -Question and answers 100% correct Premature Death - correct answer the death of a family head with unfulfilled financial obligations The need for Life Insurance - correct answer 1. Single People: Not needed 2. Single-parent Families: Ma...

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  • November 30, 2024
  • 15
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • rmi 3011 exam 3 fsu
  • rmi 3011 exam 3 fsu question and answers 100 corr
  • rmi 3011 exam 3 fsu rmi 3011 florida state univers

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RMI 3011 Exam 3 FSU Question and
answers 100% correct
Premature Death - correct answer ✔the death of a family head with
unfulfilled financial obligations


The need for Life Insurance - correct answer ✔1. Single People: Not needed
2. Single-parent Families: Maybe, use cost benefit analysis
3. Two income earners with children: Maybe but probably not
4. Traditional families: Yes, one income
5. Blended families: Depends if traditional/two-income
6. Sandwiched families: Yes, taking care of a lot of people


Two methods for determining the amount of Life Insurance to buy - correct
answer ✔1. Human Life Value Approach
2. Needs Approach


Human Life Value Approach - correct answer ✔the present value of the
family's share of the deceased breadwinner's future earnings


Needs Approach - correct answer ✔the amount needed depends on the
financial needs that must be met if the family head should die (clearance fund,
readjustment period, dependency for youngest until 18 years old, blackout
period, special needs: college, emergencies, retirement)


How much life insurance do most families own? - correct answer ✔-
Insufficient amount
- < 50% age 25-64 own life insurance policies

, - Most people own insufficient amount because it is too expensive


Opportunity Cost - correct answer ✔-the most desirable alternative given up
as the result of a decision
-usually too high for many families to purchase life insurance


Two Categories of Life Insurance - correct answer ✔1. Term Insurance
2. Cash-value Life Insurance


Term Insurance - correct answer ✔-life insurance protection for a specified
period of time, where protection expires at the end of the policy unless it is
renewed
-sometimes called temporary life insurance
-premiums increase at each renewal
-to reduce adverse selection many insurers have an age limit


Cash-value Life Insurance - correct answer ✔an accumulation of savings in
an insurance policy that can be used as a source of loan collateral


Types of Term Life Insurance - correct answer ✔1. Convertible
2. Attained-age
3. Original-age
4. Yearly renewable
5. Term to age 65
6. Decreasing term
7. Reentry term
8. Return of premium term

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