RISK MNGT FINAL fully solved already
passed
life insurance - correct answer ✔✔employers don't have to provide this, but many do
human asset loss exposures - correct answer ✔✔premature loss of life
loss of health
loss of income
premature loss of life - correct answer ✔✔life insurance
-most common reason for buying life insurance is to protect your family in the event of premature death
-3 main financial uses for purchasing life insurance
1) provide money for your family to continue their normal lifestyle
2) pay outstanding debt and mortgate
3) cover funeral and burial costs
-sometimes there are other uses
1) buy life insurance to create a college fund
2) utilize for saving for retirement
basic questions to ask when buying life insurance - correct answer ✔✔-how long do you need life
insurance for?
-what is the driving reason for buying coverage?
-how can it be purchased? individual agent or online services through group coverage
-how much do you need?
*review it annually*
employers offer it through - correct answer ✔✔-earnings multiple approach; one times annual salary
-preset approach; everyone gets the same
, -combo of both
persons involved in a life insurance contract - correct answer ✔✔insured; employee who is covered
beneficiary; primary and contingent
policyholder; the person who is usually being insure for this benefit. sometimes the bank will be this
position
*who gets the money? primary get the money, if something happens to the primary then the contingent
listed gets the money as a backup
2 categories of life insurance - correct answer ✔✔term life insurance and premiant life insurance
term life insurance - correct answer ✔✔-the only thing you want is protection from premature death
-provides financial protection against loss resulting from death during a specified period of time
-benefits are paid only if the insured dies within the stated period of the policy
-considered "pure protection"
-no cash value or savings element associated with term life insurance
-employers provide this, typically. pure life insurance, so you only pay financial protection in event of
death. lower premium, lowest you will get. you can increase your amount easily when you need it and
adjust lower when you don't need as much
permeant life insurance - correct answer ✔✔-either provide protection for employees whole life or allow
the person to complete life goals
-protection against death and saving money
-used when the need for life insurance is expected to last for a longer span of time, or even for the
insured's entire life
-permanent policies combine death benefits and a savings component
-thus with a permanent policy, if you decide to cancel or stop the policy, you walk away with the savings
portion
whole life - correct answer ✔✔-provide insurance protection at a "level" premium for the entire life of
the insured
passed
life insurance - correct answer ✔✔employers don't have to provide this, but many do
human asset loss exposures - correct answer ✔✔premature loss of life
loss of health
loss of income
premature loss of life - correct answer ✔✔life insurance
-most common reason for buying life insurance is to protect your family in the event of premature death
-3 main financial uses for purchasing life insurance
1) provide money for your family to continue their normal lifestyle
2) pay outstanding debt and mortgate
3) cover funeral and burial costs
-sometimes there are other uses
1) buy life insurance to create a college fund
2) utilize for saving for retirement
basic questions to ask when buying life insurance - correct answer ✔✔-how long do you need life
insurance for?
-what is the driving reason for buying coverage?
-how can it be purchased? individual agent or online services through group coverage
-how much do you need?
*review it annually*
employers offer it through - correct answer ✔✔-earnings multiple approach; one times annual salary
-preset approach; everyone gets the same
, -combo of both
persons involved in a life insurance contract - correct answer ✔✔insured; employee who is covered
beneficiary; primary and contingent
policyholder; the person who is usually being insure for this benefit. sometimes the bank will be this
position
*who gets the money? primary get the money, if something happens to the primary then the contingent
listed gets the money as a backup
2 categories of life insurance - correct answer ✔✔term life insurance and premiant life insurance
term life insurance - correct answer ✔✔-the only thing you want is protection from premature death
-provides financial protection against loss resulting from death during a specified period of time
-benefits are paid only if the insured dies within the stated period of the policy
-considered "pure protection"
-no cash value or savings element associated with term life insurance
-employers provide this, typically. pure life insurance, so you only pay financial protection in event of
death. lower premium, lowest you will get. you can increase your amount easily when you need it and
adjust lower when you don't need as much
permeant life insurance - correct answer ✔✔-either provide protection for employees whole life or allow
the person to complete life goals
-protection against death and saving money
-used when the need for life insurance is expected to last for a longer span of time, or even for the
insured's entire life
-permanent policies combine death benefits and a savings component
-thus with a permanent policy, if you decide to cancel or stop the policy, you walk away with the savings
portion
whole life - correct answer ✔✔-provide insurance protection at a "level" premium for the entire life of
the insured
