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EXAMFX- LIFE INSURANCE 2025 LATEST UPDATE EXPERT VERIFIED QUESTIONS AND ANSWERS REAL EXAM
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EXAMFX- LIFE INSURANCE 2025 LATEST UPDATE EXPERT VERIFIED QUESTIONS AND ANSWERS REAL EXAM
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EXAMFX: LIFE INSURANCE 2025 LATEST UPDATEEXPERT VERIFIED QUESTIONS AND ANSWERS REAL
EXAM
LifeTInsuranceT-TcorrectTanswer-
anTinsuredTpaysTaTpremiumTtoTanTinsuranceTcompany,TandTinTreturn,TtheTinsuranceTcompanyTassumesTtheTr
iskTofTthatTpersonTdyingTprematurely
LifeTInsuranceTValueT-TcorrectTanswer--
itTcanTbeTaTvaluableTpartTofTanTindividual'sTestate,TprovidingTimmediateTcashTtoTpayTdebtsTandTprovidingTfi
nancialTsecurityTtoTtheTinsured'sTsurvivors
-likeTlandTorTbuildings,TtheTcashTvalueTofTaTlifeTinsuranceTpolicyTcanTbeTusedTasTcollateralTtoTsecureTaTloan
-lifeTinsuranceTmayTbeTpaidTforTinTmanageableTinstallmentsTcalledTpremiums
WhatTareTtheTthreeTincomeTperiodsTthatTmostTinsuredsTareTexposedTto?T-TcorrectTanswer-
FamilyTDependencyTPeriod,TPreretirementTPeriod,TRetirementTPeriod
FamilyTDependencyTPeriodT-TcorrectTanswer-
thisTisTtheTperiodTwhen,TshouldTtheTinsuredTdieTprematurely,TtheTsurvivingTspouseTwillThaveTdependentTchi
ldrenTtoTsupport;TtheTfamily'sTincomeTneedTwillTbeTgreatestTduringTthisTperiod
PreretirementTPeriodT-TcorrectTanswer-
thisTisTtheTperiodTafterTtheTchildrenTareTnoTlongerTdependentTuponTtheTsurvivingTspouseTforTsupport,TbutTbe
foreTtheTsurvivingTspouseTqualifiesTforTSocialTSecurityTsurvivorTbenefitsT(blackoutTperiod);TtheTincomeTne
edsTofTtheTsurvivingTspouseTlessenTduringTthisTperiodT-
TuntilTtheTsurvivingTsouseTreachesTageT60,TsocialTsecurityTbenefitsTareTnotTavailable
RetirementTPeriodT-TcorrectTanswer-
survivingTspouse'sTworkingTincomeTceasesTandThis/hersTsocialTsecurityTbenefitsTbegin;TsinceTtheTsurviving
Tspouse'sTstandardTofTlivingTdoesTnotTlessen,TheTorTsheTwillTrequireTanTincomeTcomparableTtoTtheTpreretire
mentTperiod
DataTthatTmustTbeTgatheredTforTplanningTprocess:T-TcorrectTanswer-debt,Tincome,Tmortgage,Texpenses
, DebtTCancellationT-TcorrectTanswer-
insuranceTmayTbeTusedTtoTcreateTaTfundTtoTpayToffTdebtsTofTtheTinsuredTsuchTaThomeTmortgage'sTorTautoTlo
ans
EmergencyTReserveTFundsT-TcorrectTanswer-
insuranceTproceedsTmayTbeTusedTtoTassistTinTpayingTforTsuddenTexpensesTfollowingTtheTdeathTofTtheTinsure
d,TsuchTasTtravelTexpensesT&TlodgingTforTfamilyTmembersTcomingTfromTaTdistance
EducationTFundsT-TcorrectTanswer-
insuranceTproceedsTmayTbeTusedTtoTpayTforTchildren'sTeducationTexpensesTsoTtheyTcanTremainTinTschoolTor
TsometimesTaTsurvivingTspouseTwhoThasTworkedTinTtheThomeTcaringTforTchildrenTwillTneedTtoTreceiveTeduc
ationTorTtrainingTinTorderTtoTreenterTtheTjobTmarket
RetirementTFundT-TcorrectTanswer-insuranceTproceedsTmayTbeTusedTasTaTsourceTofTretirementTincome
BequestsT-TcorrectTanswer-
AnTinsuredTmayTwishTtoTleaveTfundsTtoTtheirTchurch,Tschool,TorTotherTorganizationTatTtheTtimeTofTtheirTdeat
h
LifeTinsuranceTcreatesTanTimmediateTestateT-TcorrectTanswer-
whenTanTinsuredTpurchasesTaTlifeTinsuranceTpolicy,The/sheTwillThaveTanTestateTofTatTleastTthatTamountTtheT
momentTtheTfirstTpremiumTisTpaid;TthereTisTnoTotherTlegalTmethodTbyTwhichTanTimmediateTestateTcanTbeTcr
eatedTatTsuchTaTsmallTcost
LiquidityT-TcorrectTanswer-
policy'sTcashTvaluesTcanTbeTborrowedTagainstTatTanyTtieTandTusedTforTimmediateTneeds
WhatTareTtheTtwoTapproachesTtoTdetermineTlifeTinsuranceTamounts?T-TcorrectTanswer-
HumanTlifeTvalueTapproachT&TNeedsTapproach
HumanTLifeTValueTApproachT-TcorrectTanswer-
givesTinsuredTanTestimateTofTwhatTwouldTbeTlostTtoTtheTfamilyTinTtheTeventTofTaTprematureTdeathTofTtheTins
ured;TcalculatesTindividual'sTlifeTbyTlookingTatTtheTinsuredTwages,Tinflation,TtheTnumberTofTyearsTtoTretire
mentTandTtimeTvalueTofTmoney
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