Answer True or False about Life Insurence: 1) Premiums for permanent insurance are often higher when...

Answer True or False about Life Insurence:

1) Premiums for permanent insurance are often higher when compared to term; however, permanent policies have the potential to build cash value that you can withdraw or borrow from if the need arises. Unpaid loans and withdrawals will reduce the death benefit and there may be tax consequences.

2) Riders that are part of your life insurance policy are free. They are marketing devices used by insurance companies.

3) Smoking increases your risk of mortality within a specified period and this is why smokers pay higher life insurance premiums.

4) The beneficiary of a life insurance policy is responsible for making the premium payments.

5) The expenses of a life insurance company have no bearing on the premiums the company charges.

Expert Solution

1. True- Permanent policies are costly.

2. False- Riders provide additional benefits and are not free

3. True- Smoking increase chances of early death resulting in higher premium.

4) False- Beneficiary of life insurance policy is always nominee appointed by premium payer.

5)False- Expenses of life insurance is included in premium cost.

jeff jeffy answered 2 years ago

When calculating premiums on life insurance products insurance companies often use life tables which enable the...

When calculating premiums on life insurance products insurance companies often use life tables which enable the probability of a person dying in any age interval to be calculated. The following table gives the number out of 100,000 females who are still alive during each five-year period of life between the age of 20 to 60 (inclusive): Out of 100,000 females born Exact age (years) Number alive at exact age 20 99,150 25 98,983 30 ...

True or False: 1. A life insurance company must be concerned about the possibility that the...

True or False: 1. A life insurance company must be concerned about the possibility that the people who buy life insurance may tend to be less healthy than those who do not. This is an example of adverse selection. 2. . An insurance company must be concerned about the possibility that someone will buy fire insurance on a building and then set fire to it. This is an example of adverse selection.

Answer True, False or Uncertain. Brieáy explain your answer Please explain 1. A permanent increase in...

Answer True, False or Uncertain. Brieáy explain your answer Please explain 1. A permanent increase in money supply cannot affect any variable in the OLG model of money. 2. In the OLG model of money, Fiat money does not pay interest, so money's rate of return is 1. 3. Suppose that the government finances its expenditure through seigniorage revenue. There exists an upper limit on the amount of the seigniorage revenue that can be generated. 4. The original Phillips curve...

1. For the same amount of premiums in comparison to whole life insurance, term life insurance...

1. For the same amount of premiums in comparison to whole life insurance, term life insurance generally purchases a.a greater amount of coverage. b.less amount of coverage. c.the same amount of coverage. d.a higher deductible. e.a lower deductible. 2. Annual Cost-of-Living-Adjustment (COLA) changes of coverage levels within long-term care insurance, disability insurance, or homeowner's insurance policies is generally designed to protect policyholders against a.the adverse event occurring. b.lower rates of return. c.lack of insurability. d.the company defaulting on its payments....

1. What are the major differences between term and permanent life insurance? When is it best...

1. What are the major differences between term and permanent life insurance? When is it best to get term insurance? (15 points) 2. Driving in a severe thunderstorm, Polly collided with another car. Two passengers in the other vehicle were injured. They filed suit against Polly. One claimed $115,000 injuries and the other claimed $135,000 in injuries. The driver of the other vehicle was not harmed, but his car’s damage totaled $6,600. Polly has bodily injury coverage for 100/300/50. Assume...

Answer the following true/false 1.A permanent mortgage is one on which interest only has to be...

Answer the following true/false 1.A permanent mortgage is one on which interest only has to be paid 2.A pro‑forma income statement is an income statement calculated on a cash basis 3.The best way to evaluate feasibility study financial projections is to convert the projected cash flow figures using net present value (NPV) or internal rate of return (IRR). 4.The concepts of financial management are basically the same for both profit and non-profit organizations 5.Funds raised through proper financial management should...

1. High insurance deductible usually means: A lower premiums B Higher premiums C No difference in...

1. High insurance deductible usually means: A lower premiums B Higher premiums C No difference in premium D you are willing to take on more risk 2. Worker's comp will still pay a claim if the worker was intoxicated at the time of the accident. A True B False 3. On a depreciating asset most likely the insurance premium would be higher for A A replacement cost policy B A value based policy C This make no difference D High...

True or False Questions: Please answer true or false. 1. Even when care is free at...

True or False Questions: Please answer true or false. 1. Even when care is free at the point of service, we would expect low and high-income individuals with the same level of need to demand different quantities of health care. 2. We would expect the demand curve for physician visits to be more price elastic than the demand curve for inpatient hospital care. 3. A decision by the provincial governments to include counseling by psychologists within the public insurance plan...

1. What is the advantage of term life insurance? lifetime insurance as long as premiums are...

1. What is the advantage of term life insurance? lifetime insurance as long as premiums are paid forced savings high rates of investment return more coverage per premium dollar 2. Which of the following policy features typically cost extra? Both waiver or premium and guaranteed insurability Waiver of premium Nonforfeiture values Guaranteed insurability 3.

People think that insurance premiums are often too high and not worth the money, however, when...

People think that insurance premiums are often too high and not worth the money, however, when an accident occurs, even something as serious as death, a car accident, a house fire, etc. people sometimes lose everything. Discuss with your classmates how you feel about car, life and property insurance that you learned about in this unit. Have you had a situation where you or someone you know did not have insurance and wish they had? Or perhaps you were harmed...

Question