Choose wisely. There is only one correct answer to each question.
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1.
Proceeds from a life insurance policy could be used to pay for your own funeral.
True. This is one of the common uses for life insurance; a policyholders surviving dependents use the proceeds for the policyholders funeral costs.
2.
All other factors being equal, a person who skydives will likely pay _______ for a life insurance policy than someone who does not have a dangerous hobby.
More. Risks are factored into what you pay for life insurance. High-risk hobbies are included in this.
3.
What do the ratings on a life insurance company ultimately indicate about the company?
Its ability to pay claims. Though assets and cash reserves are a part of the ratings, the ultimate purpose of ratings is to indicate the companys ability to pay claims, as that is what its in business to do.
4.
Which of the following might be a good source to find a life insurance agent?
All of the above. These are effective sources of information.
5.
Which form of life insurance is preferred by people who want some cash value in a life insurance policy?
Whole. Whole has cash value due to its higher premiums and how they are invested.