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PF: Buying Insurance

Total questions: 15

Worksheet time: 1hrs 15mins

Name
Class
Date
1.

How will buying auto insurance help you?

a)

It will help you exchange your damaged vehicle for an undamaged one.

b)

It will help you buy a new car on loan.

c)

It will compensate you if your car is stolen or gets damaged.

2.

When would power of attorney be needed?

a)

when someone dies unexpectedly

b)

when someone dies but there is no will and the estate must be managed

c)

when a person is unable to manage their affairs

d)

when a living will is not in place and beneficiaries must be named

3.

Which would you need in the event of professional mishaps?

a)

will

b)

power of attorney

c)

trusts

d)

insurance

4.

What are the four major components of a will?

a)

purpose, considerations, executor, codicil

b)

principle, conditions, beneficiary, notary

c)

statement, clauses, executor, amendments

d)

proposal, directives, power of attorney, trusts

5.

What is a living will?

a)

legal document that names executors and provides codicils

b)

legal document that states end of life medical care

c)

legal document that begins with "this is my last will and testament"

d)

legal document that gives directives on how your things should be given to beneficiaries when you die

6.

Select the correct answer.


What are prenuptial contracts?


Paul and Erika are getting married, but Jared has children from a previous marriage. They decide to sign a ____________ that will provide for children from a previous relationship. Paul also makes a ____________ to his will that gives Erika his home.

a)

amendment, power of attorney

b)

prenuptial agreement, codicil

c)

non disclosure form, living will

d)

will, trust

7.

Select the correct answer.


Consider the importance of risk management and estate planning.


Estate planning is planning the distribution of your estate after your death, which includes _____________. It names a/an _________ who will receive your estate.

a)

furniture, executor

b)

personal possessions, guardian

c)

car, power of attorney

d)

everything you own, beneficiary

8.

Select all the answers that apply.


Single peril includes

a)

losses from one event

b)

high insurance cost

c)

homeowner picks catastrophic

events

d)

comprehensive general property

insurance

9.

Select all the answers that apply.


Broad form includes

a)

losses from one event

b)

high insurance cost

c)

homeowner picks catastrophic

events

d)

comprehensive general property

insurance

10.

Select all the answers that apply.


Liability coverage includes

a)

pays damages to your car

b)

pays 0% damages to the

other car

c)

pays medical bills

d)

pays damages to the other

car

11.

Select all the answers that apply.


Collision coverage includes

a)

pays damages to your car

b)

pays 0% damages to the

other car

c)

pays medical bills

d)

pays damages to the other

car

12.

Select the best definition.


term life

a)

plan that earns tax-deferred interest income and has high risk

b)

plan that builds wealth and pays a death benefit

c)

plan that covers a family while the person is employed

d)

plan that covers someone for his or her entire life

13.

Select the best definition.


whole life

a)

plan that earns tax-deferred interest income and has high risk

b)

plan that builds wealth and pays a death benefit

c)

plan that covers a family while the person is employed

d)

plan that covers someone for his or her entire life

14.

Select the best definition.


index universal life

a)

plan that earns tax-deferred interest income and has high risk

b)

plan that builds wealth and pays a death benefit

c)

plan that covers a family while the person is employed

d)

plan that covers someone for his or her entire life

15.

Select the best definition.


guarantee universal life

a)

plan that earns tax-deferred interest income and has high risk

b)

plan that builds wealth and pays a death benefit

c)

plan that covers a family while the person is employed

d)

plan that covers someone for his or her entire life