Insurance

Life is filled with risk. Every decision involves risk with some more than others.

• TRUE
• FALSE

The purpose of insurance is to completely transfer risk to other people.

• TRUE
• FALSE

This type of insurance is more important than life insurance for people in their 20s. (It is likely to be 7x greater than dying)

• Disability insurance
• Renters insurance
• Health insurance
• Homeowners insurance

This is the only type of insurance where the person paying for it will not get any of the benefit.

• Life insurance 
• Disability insurance
• Renters insurance
• Auto insurance

People should buy life insurance to pay for their funerals.

• TRUE
• FALSE

Policyholders can take loans against some life-insurance policies.

• TRUE
• FALSE

If you stop making payments on a life-insurance policy, you cannot get any of your money back.

• TRUE
• FALSE

Some life-insurance policies have a savings/investment feature.

• TRUE
• FALSE

The premiums for a limited-payment policy are less than the premiums for a whole-life policy with the same amount of coverage.

• TRUE
• FALSE

Most experts in personal finance say that almost everyone should have life insurance.

• TRUE
• FALSE