Question

1. which types of life insurance are temporary? select all that apply.

□ term life
□ temporary life
□ whole life
□ permanent life
□ group life

1. which question best illustrates the need for income protection?

(client name), if (breadwinner) were to pass away tomorrow and he/she werent here to pay your mortgage, how youd you handle that? youd probably need to downsize, move the kids away from their friends and into a new school zone, and your life would probably change dramatically, right? right!
everything would be up in the air, and that obviously not best for you... let alone the kids, right?
lets imagine (breadwinner) passed away tomorrow. what would happen to his/her paychecks? they would stop, right? so... the paychecks stop, but the bills keep coming, right? so if those paychecks were to stop... meanwhile while youre at home and raising your kids, how are you going to pay the bills, keep the roof over your head, and continue providing for your kids?
(client name), how many people in your personal life do you know that have 40,000 extra dollars lying around... money that if just disappeared, wouldnt be missed by and it wouldnt hurt this person financially... probably nobody, right? so if nobody has that kind of money lying around, who is going to pay the $40,000 for your final expenses when you pass away?
(client name), if you had the choice... any amount... cost aside... how much money would you leave to your family in the event you pass away unexpectedly? as much as possible, right?
(client name), lets say you were to jump in your car tomorrow, and on the way to work, another driver runs into you. next thing you know, you find yourself in the hospital for three weeks after a ride in the ambulance... money is tight, and now you have to pay all of your usual bills and all of the coinsurance at the hospital. how would you handle paying for all of that?

Explanation:

Question 16

Term Life insurance is a type of temporary life insurance as it provides coverage for a specific "term" (e.g., 10, 20, 30 years) and does not last permanently. "Temporary Life" is not a standard recognized type of life insurance. Whole Life and Permanent Life are permanent forms of life insurance (providing coverage for the entire life of the insured as long as premiums are paid). Group Life can be either temporary (e.g., group term life) or have other structures, but the most clearly temporary standard type is Term Life.

Income Protection is about replacing lost income due to an inability to work (e.g., due to illness or injury). The option about being in the hospital after an accident and struggling to pay bills (including coinsurance and usual bills) because of lost income (since you can't work) illustrates the need for income protection. The other options relate to life insurance (covering loss of a breadwinner's income due to death) or final expense insurance (covering costs at death) or general savings for unexpected expenses, not income protection from inability to work.

Answer:

A. Term Life

Question 17