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Chapter 11 - Chapter11 LifeInsurance 1 Which of the...

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Chapter 11 Life Insurance 1) Which of the following types of families is likely to have the least need for a large amount of life insurance? A) a blended family B) a traditional family C) a single person family D) a sandwiched family Answer: C Question Status: Revised 2) The human life value is defined as the Question Status: Previous Edition 3) All of the following information is needed to calculate a person ʹ s human life value EXCEPT Question Status: Previous Edition 4) To calculate a human life value, it is necessary to deduct certain costs from a person ʹ s average annual earnings. These costs include Question Status: Previous Edition Chapter 11 Life Insurance 123 5) All of the following are defects which limit the usefulness of the human life value approach in determining the correct amount of life insurance to purchase EXCEPT A) The effects of inflation are ignored. B) Other sources of income for survivors are ignored. C) Earnings are assumed to remain constant. D) Earnings during the individual ʹ s productive lifetime are ignored. Answer: D Question Status: Revised 6) Which of the following statements about the needs approach for estimating the amount of life insurance to purchase is (are) true? I. It involves an analysis of various family needs which must be met if a family breadwinner dies. II. Its use is appropriate only if a person currently has no life insurance protection.
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Question Status: Revised 7) The purpose of an estate clearance fund is to pay all of the following EXCEPT Question Status: Previous Edition
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