Taxes and insurance Flashcards

1
Q

Actuaries are statisticians who specialize in estimating the probability of death based on personal characteristics, such as your age and general health, as well as lifestyle specifics, such as whether or not you exercise.

A

TRUE

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2
Q

Life insurance is not meant to benefit you, its purpose is to protect others in the event of your death.

A

TRUE

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3
Q

A disadvantage of term insurance is that the cost rises every time the policy is renewed.

A

TRUE

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4
Q

One of the best features of term insurance is that you are able to borrow against the face value.

A

FALSE

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5
Q

Most life insurance settlements are based on the named insured dying from accidental death.

A

FALSE

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6
Q

Term insurance has a life insurance component and the savings plan.

A

FALSE

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7
Q

One of the provisions of the Affordable Care Act is to prevent insurance companies from denying coverage to consumers with preexisting conditions.

A

TRUE

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8
Q

Your insurance’s copayment and deductible are the expenses that the insured must pay before the insurance company will pay any benefits.

A

TRUE

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9
Q

A flexible spending account saves you money on qualifying healthcare expenses.

A

TRUE

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10
Q

With COBRA coverage, the employer pays the premiums.

A

FALSE

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