Personal Life Insurance Planning FINAL EXAM (GA 49893) Copy

Which of the following is NOT generally considered to be an advantage of needs analysis when compared with the human life value approach to estimating life insurance needs?

Ellen typically takes a complete fact-finding whenever she works with a new prospect.  Which of the following is NOT a reason for needing to know a prospect’s current income when preparing a life insurance recommendation?

A prospect’s risk profile may be important in determining which one of the following?

As an agent or adviser, which of the following is NOT a reason for you to obtain information about a prospect’s or client’s assets before recommending life insurance?

Sylvia died leaving $50,000 in unpaid debts.  What happens to these debts upon her death?

Which of the following would NOT be a family financial goal?

Which of the following is NOT an open-ended question?

Which of the following is NOT a responsive listening technique?

What is the objective of responsive listening?

What generally happens when a prospect feels in rapport with an adviser?

Some of the important lump-sum cash needs that a family will have when a breadwinner dies may include all of the following:

Often as much as ___ percent of an individual’s lifetime medical expenses are incurred in a final illness.

Which of the following is NOT one of the three significant estate administration costs for many families?

Once a person dies their debt becomes the liability of his or her family, and it is usually important to reduce the family’s debt load upon the death of a breadwinner because the family’s income is reduced.

Which of the following is NOT considered when determining the proper size emergency fund:

Which of the following is NOT one of the criteria that must be met for a spouse to receive the Mother’s or Father’s Social Security income benefit.

Fully insured survivor benefits  are ____ comprehensive than currently insured survivor benefits.

Social Security benefits may be _______ if a Social Security recipient younger than full retirement age has earned income in excess of certain modest earnings limits.

A child’s Social Security benefit is generally payable to an unmarried child of a deceased worker under age 18.

When has a widow or widower reached a blackout period in regards to Social Security payments?

A Widow’s or Widower’s Social Security benefit may begin for a qualifying surviving spouse at what age?

What was an early attempt to approximate an insured’s life insurance requirements?

Which is NOT one of the five principal areas in which data-gathering must be accomplished?

Despite the high need for additional family income during any of the periods in which Social Security benefits are paid, a surviving spouse’s earned income may _______ Social Security benefits and further _____ the income problem.

At an annual income of $30,000, Jeremy is generally considered a lower-income wage earner.  On average, how much of his income goes towards family maintenance?

As a general rule-of-thumb, how much of Tom’s $150,000 annual income is used to maintain his family?

George and Selma are attempting to calculate their life insurance need and are trying to determine average funeral expenses.  Which of the following ranges should they use?

As a general rule-of-thumb, how much income should be included in a widow’s immediate cash needs?

As a general guideline, many financial practitioners use _______ income as a target for emergency funds.

How large a rent fund will normally be sufficient to ensure that a widow can remain in her rented home?

The minimum amount of college funds that many insurance planners and financial advisers suggest is ________ per year for each student.

Eva was age 45 and her youngest child age 17 when her husband died.  How long will her Social Security blackout period be, assuming she is not disabled?

Andrew has 40 quarters of coverage for Social Security purposes.  If he has not worked in the last two years, what is his Social Security status?

Phil is age 63 and receiving $12,000 of annual Social Security benefits.  By how much would his benefits be reduced if he also received $20,600 in dividend and capital gains income in 2016?

Arthur is age 63 and receiving $12,000 of annual Social Security benefits.  By how much would his benefits be reduced if he also received $21,080 in earned income in 2016 when the Social Security earnings maximum is $15,720?

A prospect’s folding his arms across his chest during a fact-finding interview is UNLIKELY to mean which of the following?

What rule-of-thumb guideline is offered to estimate a family’s immediate cash needs following the death of a breadwinner?

Federal estate taxes, if any, are usually due ____ after the date of death.

Which of the following would NOT typically be an expenditure designed to be paid from a survivor’s emergency fund?

_____ is the guideline amount for an emergency fund.

____ for Social Security results from earning at least $1,260 in 2016.

What is the maximum number of quarters of coverage for Social Security that may be accrued in a single year?

To be fully insured for Social Security purposes, an individual must generally accrue at least ____ quarters of coverage.

To be currently insured for Social Security purposes, an individual must have at least ___ quarters of coverage during the __-quarter period ending with the calendar year in which he or she died.

What is the maximum amount that may be payable under a Social Security Mother’s or Father’s benefit?

Ellen is a surviving, disabled spouse.  What is the earliest age at which she may be entitled to a Widow’s Social Security benefit?

Selma, an age 60 recipient of a Social Security Widow’s benefit, earns $16,720 from her part-time job as a clerk in 2016.  By how much will her Widow’s benefit be reduced when the earnings limit is $15,720?

Barbara’s annual income from her employer’s retirement plan at her age 68 is $15,000, and her Social Security retirement benefit is $12,000.  If she had earned income of $10,000 above the 2016 earnings limit, how much of her Social Security benefit would be lost?

If Bill wishes to supplement his retirement income by $25,000 each year and expects to be able to earn 5% on his capital, how much capital will he need using the capital retention method?

Projected survivor income needs are based on ___________.

What period(s) is/are necessary for determining the capital need?

The blackout period is the time in the surviving widow or widower’s life after the dependency periodand before he or she is eligible to receive Social Security retirement benefits.

How many layers of income are required to calculate required life insurance?

Child’s benefit is a monthly Social Security benefit for each child under the age of ______.

A Mother’s or Father’s benefitis a monthly benefit for a widow or widower who is caring for at least one child under the age of ______.

Which of the following is NOT a drawback of the liquidation of principal to produce survivor income?

When does the blackout period begin?

Capitalized value of net earnings is the amount of capital needed to replace an individual’s net earnings.

How much of the social security benefits is the surviving spouse entitled to during the blackout period?

The primary insurance amount is based on ______________.

The present valueis the current value of a past sum discounted at some interest rate, also known as a discount rate.

Assisting individuals in determining appropriate life insurance coverage is a key aspect of the _________  job.

Which factor does NOT determine economic value of an individul life?