Money Essentials

1. The two basic types of insurance policies are:
    General and term.
    Whole and indemnified.
    Term and whole life.
    Load and no-load.
2. True or false: Insurance policies cost pretty much the same and they are very much alike.
3. When shopping for life insurance, the best strategy is to:
    Do what the agent tells you. After all, they are the experts and it is the agent's job to make sure you get the products that are right for you.
    Buy your coverage at work if possible.
    Figure out how much you need, then comparison shop using the Web and other resources.
4. The purpose of life insurance is to:
    Pay your funeral and final expenses.
    Provide investment income and help fund retirement.
    Allow your dependents to maintain their lifestyle in the event of your demise.
5. You should buy a policy with sufficient face value to:
    Match your current annual salary.
    Match two times your annual living expenses.
    The answer to this question varies, but most planners say five to seven times your annual salary is normal.
    Pay your funeral expenses.
6. The key factors in determining the term of your policy are:
    The number of years you need to keep the policy in force to cover your dependents.
    The number of years before your children leave the nest.
    When you plan to retire.
    All of the above.
7. Mortgage life insurance is:
    Just like life insurance.
    A good supplement to life insurance.
    Something you should steer clear of.
8. You'll pay substantially more for life insurance due to which of the following factors:
    You are over age 60.
    Your health is poor or you smoke.
    Your driving record is poor.
    All of the above.
9. The best time to get life insurance is when:
    You are a baby.
    You get out of college or start working.
    You have dependents.
10. When shopping for life insurance on the Internet you should look for:
    A low rate.
    A company with a good rating
    A company with a low rate and a good rating
    A company that gives frequent flier miles with its policies.