FFC Insurance and Protection Planning

Question 1

A client wants pure death benefit protection for a set number of years at the lowest cost. Which type of life insurance is most appropriate?

Accepted Answer

Term life insurance

Answer

Whole life insurance

Answer

Universal life insurance

Answer

Variable life insurance

Question 2

Which of the following best describes the underwriting process in insurance?

Accepted Answer

Evaluating applicants to determine insurability and premium rates

Answer

Processing and paying out claims to policyholders

Answer

Investing policyholder premiums in the financial markets

Answer

Setting regulatory standards for insurance products

Question 3

A client has a $1,000 deductible on their health insurance plan. They incur $4,500 in covered medical expenses. How much does the insurer pay (assuming 100% coverage after deductible)?

Accepted Answer

$3,500

Answer

$1,000

Answer

$4,500

Answer

$5,500

Question 4

Which life insurance product builds cash value on a guaranteed basis and has fixed premiums?

Accepted Answer

Whole life

Answer

Term life

Answer

Variable universal life

Answer

Decreasing term

Question 5

Disability income insurance is primarily designed to replace what percentage of a worker's pre-disability earned income?

Accepted Answer

50–70%

Answer

25–40%

Answer

80–90%

Answer

100%

Question 6

In a life insurance policy, who is the 'beneficiary'?

Accepted Answer

The person or entity designated to receive the death benefit

Answer

The person whose life is insured under the policy

Answer

The insurance company collecting premiums

Answer

The agent who sold the policy

Question 7

Which type of insurance provides coverage for expenses related to custodial and skilled nursing care that health insurance typically excludes?

Accepted Answer

Long-term care insurance

Answer

Medigap insurance

Answer

Critical illness insurance

Answer

Hospital indemnity insurance