Question

Q1. Families faced with the loss of a principal wage earner receive Social Security survivor's benefits:

A. that are deducted from the insurance proceeds, for the purpose of tax calculation.

B. that will pay any additional taxes on the benefit amount.

C. from the government that are intended to provide basic, minimum support.

D. that amount to 5 to 10 times the current income of the principal wage earner.

E. that will repay all the financial obligations of the principal wage earner.

Q2. Term insurance is always less expensive than permanent insurance. Which of the following coverages below is the least expensive.

	A.	30 year term
	B.	20 year convertible term
	C.	10 year convertible term
	D.	20 year non convertible term

3. Financial planning is important because

	A.	controls inflation
	B.	limits consumption
	C.	reduces social disparity
	D.	results in an improved standard of living.
	E.	reduces economic differences among individuals.

Answer 1

Answer :1) Correct option is (C.) from the government that are intended to provide basic, minimum support.

Reason :

Families faced with the loss of a principal wage earner receive Social Security survivor's benefits from the government that are intended to provide basic, minimum support so that they can survive their lives.

Answer : 2) Correct option is D 20 year non convertible term.

Reason :

A 20-year non convertible term is less expensive then the above mentioned options as in this case premium remains fixed.

Answer : 3 Correct option is (D.) results in an improved standard of living.

Reason :

When finacial planning is done in our personal lives then it results in an improved standard of living.Finacial Planning is very important part which needs to be carefully done.