The person who receives the payment from a life insurance policy is called the ________.

• policyholder

• insured

• insurer

• beneficairy

People buy life insurance from __________.

• the federal government

• their local government

• a company

• their health care provider

Which of the following is the most common reason for buying life insurance?

• to provide health care coverage in case of an accident

• to provide financial support for those who depend on you in the event of your death

• to build up investments for retirement

• to take advantage of tax rebates

Which of the following is also known as permanent insurance?

• premium insurance

• whole life insurance

• term insurance

• universal life insurance

Which type of life insurance does NOT serve as a type of investment?

• whole life insurance

• universal life insurance

• term insurance

• permanent insurance

Which type(s) of life insurance policy will pay a benefit only if the policyholder dies within a specified time period?

• whole life insurance

• term

• universal life

• both term and universal life

This year Terri decided to add another five years of coverage to her existing life insurance policy. Terri most likely has a ________ insurance policy.

• term

• whole life

• universal life

• permanent

Gayle makes about $45,000 a year and has one dependent daughter. Her savings are minimal, so she believes she needs a life insurance multiple of 20. How much life insurance should she buy?

Sherry just purchased 20 times her annual income in life insurance. She has one job where she makes about $55,000 a year and she does some freelance work and makes another $24,000 a year. How much insurance did she purchase?

Demetrius is single but would like to take care of his mother in the event of his death. He would like to replace her income of $25,000 a year with a multiple of 30. How much life insurance should he buy?