A single-earner family with
two young children in preschool.
The primary purpose of life insurance is to replace income relied on by dependents. The single-earner family with dependents (children and perhaps a non-working spouse) would have the greatest financial need if the primary earner died.
Which household would typically have the greatest life insurance needs?
A single-earner family with
two young children in preschool.
The primary purpose of life insurance is to replace income relied on by dependents. The single-earner family with dependents (children and perhaps a non-working spouse) would have the greatest financial need if the primary earner died.
What is the most important part of an insurance agents job?
What is the most important part of an insurance agent's job?
a Sell you the highest level of coverage available
.
Which of the following is a reason to have life insurance?
Life insurance is critical to protect a family's financial situation in the event that a breadwinner dies. … The only reason a person would buy life insurance is
to eliminate or substantially reduce the financial consequences of that person's death by providing income to his or her dependents
.
Which one is the most positive feature of whole life insurance for a person who wants a more structured way to save?
Of the following, which one is the most positive feature of whole life insurance for a person who wants a more structured way to save?
It builds cash value
.
What is the main difference between whole life insurance and term life insurance?
Term life is “pure” insurance, whereas whole life adds a cash value component that you can tap during your lifetime. Term coverage only protects you for a limited number of years, while
whole life provides lifelong protection
—if you can keep up with the premium payments.
Is it really necessary to have insurance?
Insurance is a way of
managing risks
. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there's a claim.
Why do insurance agents quit?
26.2% voted a
lack of money for leads
as their primary reason why they quit. Less important reasons agents quit selling insurance include running out of prospects, personal issues like health problems, and discovering the business wasn't a right fit.
Who is the richest insurance agent?
Here's the list and topping it — to no one's surprise — is Berkshire Hathaway's,
Warren Buffett
. He's the wealthiest of all involved in insurance. Buffett's firm, Berkshire Hathaway owns several insurance operations including GEICO.
What are the qualities of a good insurance agent?
- Problem-solver. Do you enjoy coming up with creative solutions to problems? …
- Self-motivated.
- Honest. This might seem obvious, but unethical insurance agents rarely stay in business very long. …
- Sense of urgency. …
- Reslience. …
- Passionate. …
- Communication Skills. …
- Good Listener.
What is the best reason to purchase life insurance rather than annuities?
The annuity offers tax-deferred savings and retirement income. Simply put—
life insurance protects your loved ones if you die prematurely
while the annuity protects your income if you live longer than expected.
What are two types of life insurance?
There are two major types of life insurance—
term and whole life
. Whole life is sometimes called permanent life insurance, and it encompasses several subcategories, including traditional whole life, universal life, variable life and variable universal life.
What type of insurance is temporary?
Temporary life insurance
is a type of policy that gives you the benefit of staying covered during a period where you may be in between life insurance policies. A temporary life insurance policy is often issued during the full underwriting process of your term or permanent policy.
What is the downside to whole life insurance?
Like all insurance products, whole life insurance has its downsides:
It's expensive
. Since permanent policies offer lifelong coverage, they come with a significantly higher price tag. Whole life typically costs 5 to 10 times more than term life insurance.
Can life insurance be used for retirement?
You can also use life insurance for retirement
by borrowing from your cash value
. Think of it as a loan you're getting from your future self.
What is a straight life policy?
A straight life annuity, sometimes called a straight life policy, is
a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit
. Like all annuities, a straight life annuity provides a guaranteed income stream until the death of the annuity owner.
