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Intermediate
Benefits Intermediate:
Whole Life Insurance
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1.
What is the main purpose of life insurance?
Choose wisely. There is only one correct answer.
To earn wealth for you
To provide financial support to your beneficiaries after your death
To make your beneficiaries rich
All of the above
To provide financial support to your beneficiaries after your death. Life insurance is ultimately meant for your beneficiaries.
2.
You can borrow the cash value of your life insurance policy through _______.
Choose wisely. There is only one correct answer.
Bonds
Tax-free loans
A checking account
Tax-free loans. You can take out the cash value of your permanent policy through tax-free loans.
3.
Mutual insurance company dividends are taxable.
Choose wisely. There is only one correct answer.
True
False
False. Mutual insurance company dividends are a tax-free return of premium.
4.
In a split-dollar arrangement, the _______ owns the life insurance policy.
Choose wisely. There is only one correct answer.
Employee
Employer
Beneficiary
Employer. In a split-dollar arrangement, the employer owns the life insurance policy.
5.
In a whole life insurance policy, part of the premium you pay _______.
Choose wisely. There is only one correct answer.
Covers the death benefit
Is invested
Both covers the death benefit and is invested
Both covers the death benefit and is invested. Your premium goes toward both of these.
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DONE