Choose wisely. There is only one correct answer to each question.
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1.
The financial soundness of a life insurance company matters to you because it affects the companys ability to pay your claims.
True. Indeed, this is what insurance companies are in business for, and the healthier they are, the better they can pay claims.
2.
Many life insurance agents specialize in areas of financial planning that are related to life insurance in some way.
True. Some specialize in estate planning, for example. A specialist can be valuable if you have specific needs in a life insurance policy.
3.
If you have enough wealth to support your dependents after your death, you probably _______.
Do not need life insurance. This assumes that you are factoring in all possible challenges to your wealth. Some people who do have enough wealth for their dependents like to buy a policy anyway, just in case.
4.
All other factors being equal, which of the following forms of term life insurance is less expensive?
Group term. Group is cheaper because the cost and the risk are spread among many people.
5.
Which of the following is a typical guideline for life insurance coverage for your dependents?
5-10 times your yearly salary. This is a general rule; there are exceptions to it, of course.