Question 7

Fifty-six year old Krista is the policy owner and life insured of a 10-year term life insurance policy, with a face value of $250,000. This includes a convertible feature that allows conversion up to age 75. The primary benefit to a convertibility feature is:

Question 7 options:

	It will lower the premiums on the policy
	It allows the policy owner to convert to term 100 insurance
	It allows the policy owner to adjust premiums at any time
	It allows the policy owner to convert to permanent insurance without providing medical evidence of good health

Question 8

With regard to group life insurance, which of the following statements are true?

1. An individual employee does not have the freedom to select a specific amount of insurance coverage, but rather the amount of coverage is typically a fixed dollar amount, or a variable amount in relationship to the employee's annual income. 2. There is typically a change in the premium rate each year. 3. Group insurance is normally a permanent type of insurance policy that provides long-term insurance protection for a significant number of Canadians. 4. An employee who participates in a group life insurance plan is unable to designate a beneficiary.

Question 8 options:

	1 and 2
	1 and 4
	2 and 3
	3 and 4

Question 9

Max is age 50 while his son Martin is age 26. With regard to the life expectancy of Max and Martin, which one of the following statements is true?

Question 9 options:

	Martin and Max have an equal probability of death this year.
	Martin has a lower probability of death next year than Max
	Max has a lower probability of death this year than Martin.
	Martin has a higher probability of death in the next year than Max.

Question 10

Louis owns a non-exempt life insurance policy with a death benefit of $500,000 and a cash value of $41,500. Given this scenario, if Louis' daughter, Marla, was the beneficiary of the policy, how much tax would she need to report in the year of his death? Assume an MTR of 25% for Marla.

Question 10 options:

	$0
	$10,375
	$135,375
	$500,000

Question 11

Donna wants to purchase an individual disability insurance policy but feels that the cost is more than she can afford. The plan design that she is currently considering includes a benefit based on 50 percent of her after-tax income up to a maximum of $5,000 per month, a 90-day waiting period and a benefit period that runs to age 65. Which of the following plan design changes would lower Donnas monthly cost?

Question 11 options:

	Decrease the waiting period to 60 days
	Increase the benefit percentage from 50% to 55%
	Increase the monthly benefit maximum from $5,000 to $6,000
	Increase the waiting period to 120 days