Author Question: Most family heads need substantial amounts of life insurance. However, with limited income, money ... (Read 63 times)

HCHenry

  • Hero Member
  • *****
  • Posts: 591
Most family heads need substantial amounts of life insurance. However, with limited income, money spent on life insurance reduces the amount of discretionary income available for other high-priority needs.
 
  What an insured person gives up when he or she purchases life insurance instead of using the premium dollars for other purposes is called the
  A) estimated cost of life insurance.
  B) net cost of life insurance.
  C) real (inflation-adjusted) cost of life insurance.
  D) opportunity cost of buying life insurance.

Question 2

When using the needs approach, several special needs should be considered. One special need is money to cover unexpected events, such as major car repairs, dental bills, or home repairs. Money set aside for this purpose is called a(n)
 
  A) estate clearance fund.
  B) emergency fund.
  C) readjustment period fund.
  D) mortgage redemption fund.



yeungji

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

Answer: D

Answer to Question 2

Answer: B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

For a complete list of videos, visit our video library