Taxes and insurance

Question 1

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.

Answer 1

TRUE

Question 2

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

Answer 2

TRUE

Question 3

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

Answer 3

TRUE

Question 4

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

Answer 4

FALSE

Question 5

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

Answer 5

FALSE

Question 6

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

Answer 6

FALSE

Question 7

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

Answer 7

TRUE

Question 8

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

Answer 8

TRUE

Question 9

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

Answer 9

TRUE

Question 10

With COBRA coverage, the employer pays the premiums.

Answer 10

FALSE