C.25 Insurance needs analysis

Question 1

What is the first step in the insurance needs analysis process?

A. Assessing the client’s financial situation
B. Determining the client’s insurance needs
C. Identifying the client’s risk exposures
D. Evaluating the client’s existing insurance coverage

Answer 1

C. Identifying the client’s risk exposures

C.25 Insurance needs analysis

Question 2

What type of insurance would be most appropriate for a client with a high risk of premature death?

A. Long-term care insurance
B. Disability insurance
C. Life insurance
D. Homeowner’s insurance

Answer 2

C. Life insurance

C.25 Insurance needs analysis

Question 3

What type of insurance would be most appropriate for a client with a high risk of a catastrophic illness?

A. Long-term care insurance
B. Disability insurance
C. Life insurance
D. Homeowner’s insurance

Answer 3

A. Long-term care insurance

C.25 Insurance needs analysis

Question 4

What is the purpose of a life insurance needs analysis?

A. To determine how much life insurance coverage a client needs
B. To assess a client’s risk exposures
C. To evaluate a client’s existing life insurance coverage
D. To identify a client’s long-term care needs

Answer 4

A. To determine how much life insurance coverage a client needs

C.25 Insurance needs analysis

Question 5

What type of insurance would be most appropriate for a client with a high risk of becoming disabled and unable to work?

A. Long-term care insurance
B. Disability insurance
C. Life insurance
D. Homeowner’s insurance

Answer 5

B. Disability insurance.

C.25 Insurance needs analysis

Question 6

During the insurance needs analysis process, what factors should be considered when determining the appropriate amount of life insurance coverage?

A. Age, income, and number of dependents
B. Education level, occupation, and marital status
C. Home value, location, and size
D. Debt load, credit score, and investment portfolio

Answer 6

A. Age, income, and number of dependents

C.25 Insurance needs analysis

Question 7

What type of insurance would be most appropriate for a client who owns a home and wants to protect it from damage or loss?

A. Long-term care insurance
B. Disability insurance
C. Life insurance
D. Homeowner’s insurance

Answer 7

D. Homeowner’s insurance

C.25 Insurance needs analysis

Question 8

During the insurance needs analysis process, what factors should be considered when determining the appropriate amount of disability insurance coverage?

A. Age, income, and number of dependents
B. Education level, occupation, and marital status
C. Home value, location, and size
D. Debt load, credit score, and investment portfolio

Answer 8

B. Education level, occupation, and marital status

C.25 Insurance needs analysis

Question 9

What type of insurance would be most appropriate for a client who is concerned about the cost of long-term care in the future?

A. Long-term care insurance
B. Disability insurance
C. Life insurance
D. Homeowner’s insurance

Answer 9

A. Long-term care insurance

C.25 Insurance needs analysis

Question 10

During the long-term insurance needs analysis process, what factors should be considered when determining the appropriate amount of long-term care insurance coverage?

A. Age, income, and number of dependents
B. Education level, occupation, and marital status
C. Home value, location, and size
D. Health history, family medical history, and lifestyle factors

Answer 10

D. Health history, family medical history, and lifestyle factors

C.25 Insurance needs analysis

Question 11

What is the purpose of a disability insurance needs analysis?

A. To determine how much disability insurance coverage a client needs
B. To assess a client’s risk exposures
C. To evaluate a client’s existing disability insurance coverage
D. To identify a client’s long-term care needs

Answer 11

A. To determine how much disability insurance coverage a client needs

C.25 Insurance needs analysis

Question 12

What type of insurance would be most appropriate for a client who is concerned about the financial impact of a critical illness?

A. Long-term care insurance
B. Disability insurance
C. Life insurance
D. Critical illness insurance

Answer 12

D. Critical illness insurance

C.25 Insurance needs analysis

Question 13

During the insurance needs analysis process, what factors should be considered when determining the appropriate amount of critical illness insurance coverage?

A. Age, income, and number of dependents
B. Education level, occupation, and marital status
C. Home value, location, and size
D. Health history, family medical history, and lifestyle factors

Answer 13

D. Health history, family medical history, and lifestyle factors

C.25 Insurance needs analysis

Question 14

What type of insurance would be most appropriate for a client who is concerned about the financial impact of a sudden death?

A. Long-term care insurance
B. Disability insurance
C. Life insurance
D. Critical illness insurance

Answer 14

C. Life insurance

C.25 Insurance needs analysis

Question 15

During the insurance needs analysis process, what factors should be considered when determining the appropriate amount of homeowner’s insurance coverage?

A. Age, income, and number of dependents
B. Education level, occupation, and marital status
C. Home value, location, and size
D. Debt load, credit score, and investment portfolio

Answer 15

C. Home value, location, and size

C.25 Insurance needs analysis

Question 16

Case Study: Risk Management and Insurance Planning for the Anderson Family

Background:
The Anderson family consists of John (40), his wife Jane (37), and their two children, Luke (10) and Maya (7). John is an architect earning $90,000 annually, and Jane is a freelance writer, bringing in about $30,000 annually. Their combined household assets amount to $450,000, including their home, investments, and retirement savings. They have a mortgage of $200,000, which has 20 years remaining.

Insurance Profile:
- John has a term life insurance policy with a death benefit of $200,000.
- Jane doesn’t have life insurance.
- They both have health insurance through John’s employer.
- John has disability insurance covering 60% of his income.
- Their homeowners’ insurance policy covers the replacement value of their home but does not include any additional coverage for natural disasters.

Question:
Which of the following insurance needs is the most immediate concern for the Anderson family?

A. Increasing homeowners’ insurance to cover natural disasters
B. Getting life insurance for Jane
C. Getting a comprehensive auto insurance policy
D. Increasing John’s life insurance coverage

Answer 16

B. Getting life insurance for Jane.

C.25 Insurance needs analysis

Question 17

Case Study: Risk Management and Insurance Planning for the Anderson Family

Background:
The Anderson family consists of John (40), his wife Jane (37), and their two children, Luke (10) and Maya (7). John is an architect earning $90,000 annually, and Jane is a freelance writer, bringing in about $30,000 annually. Their combined household assets amount to $450,000, including their home, investments, and retirement savings. They have a mortgage of $200,000, which has 20 years remaining.

Insurance Profile:
- John has a term life insurance policy with a death benefit of $200,000.
- Jane doesn’t have life insurance.
- They both have health insurance through John’s employer.
- John has disability insurance covering 60% of his income.
- Their homeowners’ insurance policy covers the replacement value of their home but does not include any additional coverage for natural disasters.

Question:
If John were to become disabled and could not work, what approximate amount would his disability insurance cover per year?

A. $45,000
B. $54,000
C. $36,000
D. $60,000

Answer 17

B. $54,000

C.25 Insurance needs analysis

Question 18

Case Study: Risk Management and Insurance Planning for the Anderson Family

Background:
The Anderson family consists of John (40), his wife Jane (37), and their two children, Luke (10) and Maya (7). John is an architect earning $90,000 annually, and Jane is a freelance writer, bringing in about $30,000 annually. Their combined household assets amount to $450,000, including their home, investments, and retirement savings. They have a mortgage of $200,000, which has 20 years remaining.

Insurance Profile:
- John has a term life insurance policy with a death benefit of $200,000.
- Jane doesn’t have life insurance.
- They both have health insurance through John’s employer.
- John has disability insurance covering 60% of his income.
- Their homeowners’ insurance policy covers the replacement value of their home but does not include any additional coverage for natural disasters.

Question:
Given their current financial obligations, how much additional life insurance coverage should John consider to adequately cover the family’s needs?

A. $100,000
B. $200,000
C. $450,000
D. $650,000

Answer 18

D. $650,000

C.25 Insurance needs analysis

Question 19

Case Study: Risk Management and Insurance Planning for the Anderson Family

Background:
The Anderson family consists of John (40), his wife Jane (37), and their two children, Luke (10) and Maya (7). John is an architect earning $90,000 annually, and Jane is a freelance writer, bringing in about $30,000 annually. Their combined household assets amount to $450,000, including their home, investments, and retirement savings. They have a mortgage of $200,000, which has 20 years remaining.

Insurance Profile:
- John has a term life insurance policy with a death benefit of $200,000.
- Jane doesn’t have life insurance.
- They both have health insurance through John’s employer.
- John has disability insurance covering 60% of his income.
- Their homeowners’ insurance policy covers the replacement value of their home but does not include any additional coverage for natural disasters.

Question:
Assuming the Anderson family lives in an area with a high risk of natural disasters, what change should they consider for their homeowners’ insurance?

A. Decrease the deductible for quicker claims.
B. Add coverage for natural disasters.
C. Switch to a cheaper insurer to save money.
D. Drop the homeowners’ insurance since the risk is too high.

Answer 19

B. Add coverage for natural disasters

.

C.25 Insurance needs analysis

Question 20

Case Study: Risk Management and Insurance Planning for the Anderson Family

Background:
The Anderson family consists of John (40), his wife Jane (37), and their two children, Luke (10) and Maya (7). John is an architect earning $90,000 annually, and Jane is a freelance writer, bringing in about $30,000 annually. Their combined household assets amount to $450,000, including their home, investments, and retirement savings. They have a mortgage of $200,000, which has 20 years remaining.

Insurance Profile:
- John has a term life insurance policy with a death benefit of $200,000.
- Jane doesn’t have life insurance.
- They both have health insurance through John’s employer.
- John has disability insurance covering 60% of his income.
- Their homeowners’ insurance policy covers the replacement value of their home but does not include any additional coverage for natural disasters.

Question:
If Jane were to consider getting a term life insurance policy with a similar death benefit as John’s, which factor will most likely result in her premium being different from John’s?

A. Jane’s occupation as a freelance writer.
B. The age difference between Jane and John.
C. The number of children they have.
D. Their combined household assets.

Answer 20

B. The age difference between Jane and John

C.25 Insurance needs analysis