Wise Review 20 questions

John’s company will match his pre-tax contributions to the company’s retirement plan, known as:

• a 401(k)

• A Roth IRA

• A defined benefit plan

• A traditional IRA

A woman has just received a very expensive piece of jewelry. The woman has homeowner's insurance. Which statement would it be most appropriate for her to make to her insurance agent?

• I think I need a personal property floater.

• I think I should get speculative risk insurance.

• I will deduct the cost of the jewelry from my premium.

• I realize that if this jewelry is stolen it will be considered vicarious liability.

Why is term life insurance usually the least expensive type of life insurance?

• The policy only pays a death benefit

• The policy builds a cash value

• The policy provides coverage for a lifetime

• The policy is available to all consumers

Generally, the higher the deductible on an insurance policy, the

• greater the premium

• lower the premium

• more frequently the premium has to be paid

• less frequently the premium has to be paid

A person buys a homeowner's insurance policy with a $250 deductible, which means the person

• have to pay a quarterly premium of $250

• have to pay the first $250 which will be deducted from the claim settlement paid by the insurance company

• only receive payment from the insurance company of $250 for any single article damaged

• not be responsible for the first $250 of the claimed damages

Which statement does NOT accurately describe a characteristic of cash value for whole life insurance?

• Cash value grows gradually over time

• Cash value is intended to be used as a savings element

• Cash value can be borrowed against at any time

• Cash value is payable upon death along with the face value of the policy

When Jessie needs health care, she must first go to her primary care physician who coordinates her care and decides whether Jessie should see a specialist. Jessie pays $10 as the co-pay when she sees her primary care doctor. Jessie has which type of health insurance?

• Fee-for-service health plan

• Managed care health plan

• Medicaid health plan

• Comprehensive health plan

After five years of owning a Roth Individual Retirement Account (IRA), a person wants to buy his first home, the person can withdraw money from the Roth IRA:

• tax and penalty free

• but must pay a set penalty at the time of withdrawal

• and have penalties deferred until retirement

• and owed taxes are deferred until retirement

You have a $2,000 loss. Your insurance company pays you $1,500 on the claim for the loss. The $500 the insurance did not pay is a result of your policy having a

• Co-insurance clause

• Deductible

• Hazard clause

• Premium

When deciding between two job offers with a similar salary offer, a person should first consider:

• Travel time to the work location and the size of the organization

• Retirement and health plans

• Tuition reimbursement and bonus potential

• Reputation of the organization