Tests Your Insurance Knowledge

1.
Life insurance can be used only to provide income for surviving dependent family members.
True
False

2.
In general, life insurance death proceeds are not subject to income taxation.
True
False

3.
Term life insurance is an excellent vehicle for providing short-term coverage.
True
False

4.
The single most important distinction between variable life and traditional whole life is the investment flexibility and the consequent shifting of the investment risk from the insurer to the policyowner.

True
False

5.
For life long insurance protection, a permanent life insurance policy would likely be the best choice.
True
False

6.
Typically, a policyowner has the power to change the beneficiary or beneficiaries while a life insurance policy is in force.
True
False

7.
The cash value growth within a life insurance policy is taxed each year.
True
False

8.
Most deferred annuity contracts impose a surrender charge if monies are removed from the contract by either full or partial surrender within a certain number of years from the date of purchase.
True
False

9.
It is possible to gain access to life insurance policy cash values.
True
False

10.
Cost indexes are used to compare the costs of similar life insurance policies.
True
False

11.
When selecting a life insurance policy, ratings tell the whole story about a life insurance company.
True
False

12.
An employee typically is not taxed on the premiums paid by the employer under a group term life insurance plan, unless the amount of coverage exceeds $50,000.
True
False

13.
When an employee with group life insurance coverage is temporarily laid off or granted a leave of absence, the life insurance contract is immediately terminated.
True
False

14.
Employer-sponsored group disability insurance policies are "portable," meaning you can keep your coverage even if you leave your job.
True
False

15.
If you pay the premiums for a disability income policy with after-tax dollars, the income benefits you receive under the policy are not subject to federal income tax.
True
False

16.
The following statements are all myths surrounding long-term care:
  • The government or health insurance will cover me.
  • I'll be able to pay for it.
  • It won't happen to me, and besides, I'm too young.
  • My family will take care of me.
  • I cannot afford long-term care insurance.
True
False

   
Financial Matters
  • Estate Planning Guide
 
Find a Representative
 
Career Opportunities
 
Life Insurance FAQs
Site Map
Search
 

 
 
© 2009 Security Mutual Life Insurance Company of New York

100 Court Street, PO Box 1625, Binghamton, New York 13902-1625 Phone: 1-800-346-7171
All rights reserved. Home • Legal Notice • Do You Suspect Insurance Fraud? • Privacy Policy • SecurityLink