100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
BUSFIN 3300 Midterm 2 Questions with Correct Answers $15.49   Add to cart

Exam (elaborations)

BUSFIN 3300 Midterm 2 Questions with Correct Answers

 7 views  0 purchase
  • Course
  • BUSFIN 3300
  • Institution
  • BUSFIN 3300

BUSFIN 3300 Midterm 2 Questions with Correct Answers

Preview 2 out of 8  pages

  • August 10, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BUSFIN 3300
  • BUSFIN 3300
avatar-seller
cracker
BUSFIN 3300 Midterm 2 Questions with Correct
Answers
Premature Death Correct Answer-Death of a family head with
outstanding unfulfilled financial obligations


Types of families who need insurance Correct Answer-Single people
Single-parent families
Two income earners with children
Traditional families
Blended families
Sandwiched families


Human Life Value approach to determining amount to insure Correct
Answer-Amount needed for insurance depends on the PV of the family's
share of the deceased's future earnings


Needs approach to determining amount to insure Correct Answer-
Amount needed depends on the financial needs that must be met should
the head of the family die


General Categories of Life Insurance Correct Answer-1. Term
2. Cash Value


Term Life Insurance Correct Answer-Protection expires at the end of the
policy unless renewed

, -Premiums increase with renewal
-To minimize adverse selection: age restrictions
-Most are convertible


Yearly Renewable Life Insurance (Term) Correct Answer-Life insurance
policy issued for one year


Term to age 65 Correct Answer-Life insurance policy that expires at age
65


Decreasing Term Correct Answer-Face value gradually decreases each
year


Reentry Term Policy Correct Answer-Renewal premiums based on
lower mortality rates if insured can periodically demonstrate evidence of
insurability


Whole Life Insurance Correct Answer-Cash-value policy that provides
lifetime protection


Ordinary Life Insurance (Whole) Correct Answer-Level-premium policy
that accumulates to age 121
-Premiums paid throughout payment period
-Excess payments paid early on to supplement deficiency in later years

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller cracker. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $15.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

71184 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$15.49
  • (0)
  Add to cart