Term Quiz 2

What is the recommended inflation rate used by Ditto for term insurance calculations?

• 3%

• 5%

• 6%

• 7%

Which of the following is NOT a type of loan considered when calculating term insurance coverage?

• Education Loan

• Car Loan

• Loan for Buying a Lifetime Supply of Coffee

• Personal Loan

The grace period for paying missed premiums without losing policy benefits typically ranges between:

• 5-10 days

• 15-30 days

• 60-90 days

• As long as you can come up with a really good excuse

When calculating the insurance coverage amount, why is it important to include a buffer amount?

• To account for future potential expenses

• Because it sounds impressive to have a buffer

• To confuse the policyholder

• To make sure the insurance company makes extra profit

What happens if a policyholder dies during the grace period?

• The claim is rejected outright

• The claim is paid out, but the unpaid premium is deducted

• The claim amount is doubled

• The insurance company sends a "We Miss You" card

Discuss the importance of considering inflation when planning for term insurance. How does Ditto estimate inflation rates, and why is this approach used?

Explain the expenses-based approach used by Ditto to calculate the ideal insurance cover for an individual. Include the types of expenses considered and how the buffer amount is determined.

Discuss the importance of considering inflation when planning for term insurance. How does Ditto estimate inflation rates, and why is this approach used?

Explain the expenses-based approach used by Ditto to calculate the ideal insurance cover for an individual. Include the types of expenses considered and how the buffer amount is determined.

How does Ditto suggest incorporating loan amounts into term insurance coverage calculations?