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Protecting Your Family: What do you know about buying life insurance?
by Staff
For parents, life is all about taking care of your family to the best of your abilities. This includes making sure your children and spouse can support themselves in case of your death. Take our quiz to learn the dos and don'ts of buying life insurance for your family.

What is term life insurance?

  • life insurance for a set period of time
  • life insurance for a terminally ill person
  • life insurance for a person without children

True or false: Whole life insurance is more expensive than term life insurance.

  • true
  • false

What is a life insurance "premium?"

  • the amount of money you pay to support your life insurance coverage
  • the amount of money you need to buy a year's worth of coverage
  • the insurance coverage amount

True or false: To qualify for a life insurance policy, you must always undergo a medical exam.

  • true
  • false

What happens if you miss a premium payment?

  • You'll have to pay for two months' coverage in one month.
  • Your policy will lapse, and you'll lose coverage.
  • Your policy is frozen until the premium is paid.

What is another term for whole life insurance?

  • permanent life insurance
  • all-around life insurance
  • total life insurance

True or false: An average term life policy should last until your youngest child can support him or herself.

  • true
  • false

Is life insurance on your child worth buying?

  • yes
  • no
  • only if the policy is inexpensive

What is a life insurance beneficiary?

  • the person or entity who receives the death benefits of your policy
  • the person who pays your life insurance premium
  • the person who signs your life insurance policy

True or false: You should always designate your child as your beneficiary.

  • true
  • false

Even if you receive life insurance through your employer, should you buy more coverage?

  • yes
  • no
  • only if the coverage is minimal

If you're diagnosed with a terminal illness after you secure a life insurance policy, can the insurance company cancel your policy?

  • yes
  • no
  • only if you're diagnosed with the illness within 90 days of beginning coverage

How often should you review your life insurance policy?

  • every year
  • whenever a major event in your life occurs
  • both of the above
  • neither of the above

How can you get a better rate on your insurance?

  • quit smoking
  • lose weight
  • both of the above

What's the general guideline for knowing how much insurance coverage to buy?

  • five to 10 times your income
  • 10 to 20 times your income
  • 20 to 30 times your income

True or false: It's cheaper and easier to buy life insurance from an agent.

  • true
  • false

In 2010, about what percentage of American households were without any life insurance?

  • 15 percent
  • 30 percent
  • 50 percent

What's the best way to learn whether an insurance company is reputable?

  • Ask your friends.
  • Use whoever gives you the cheapest rate.
  • Compare ratings from independent agents.

Which of the following should you NOT consider when determining how much insurance to buy?

  • daily living expenses for your children and spouse
  • payments on debts you owe
  • buying a vacation home

True or false: Life insurance death benefits are not subject to being taxed.

  • true
  • false