All Life Insurance Tips

Insurance quesion, help!?

Cash value life insurance is more expensive than term insurance because a. it is usually sold to older people who have higher mortality. b. higher rates of interest are earned on term policy investments. c. whole life is subject to adverse selection. d. the whole life contracts include both a protection element and a savings or investment element. e. none of the above. Is this one C? Past efforts to address the growing imbalance between tax-paying workers and social security beneficiaries have included a. increasing the social security (FICA) tax rate. b. increasing the maximum income subject to the social security tax. c. increasing the normal retirement age. d. taxing part of social security benefits. e. all of the above. This one E? The Consolidated Omnibus Budget Reconciliation Act (COBRA) contains provisions that a. allow continuation of group health insurance by employees and certain dependents upon the occurrence of designated events. b. apply to all employers offering group health insurance to employees. c. require an employer to pay the cost of continuing former employees' health insurance for up to 36 months. d. allows terminated employees to continue their group health insurance for up to 36 months. e. all of the above. This one E?

Public Comments

1. The first question is absolutely D, C is completely false and doesn't make any sense. Whole life is medically underwritted just as much as term life insurance is. Adverse selection doesn't happen here at all. For question number 2 it is E Only A is correct. B is incorrect because it does not apply to a business with under 20 employees. C is incorrect because with COBRA the employer pays NONE of the premium, that is why it is some much higher cost than when the employee was employed with the company. D is incorrect because COBRA only goes to a maximum of only 18 months not 36
2. 1. D. Seriously, you're not going to pass if you can't explain WHY. 2. E. 3. A. And again, you have to know WHY.